It is general practice that when a country produces a product in huge quantity its import is being discouraged in the first place. Otherwise local producers enjoy protection under higher import duty. Here it seems to be quite on the opposite. This is not acceptable.
As it appears India is using the India-Bangladesh Friendship Company to demand such duty-free imports at the cost of the national economic interest of Bangladesh. The company claims such benefit citing the terms of EXIM Bank credit financing the power plant. It said at least 75 percent of goods and services for the power plant need to be bought from India.
But Mongla Customs Authorities have refused to accept the claim saying that those bars are erection materials of the structure not part of the machinery as claim by the Indian side. Bangladesh Power Development Board and India’s National Thermal Power Corporation are building Rampal Power Plant at an estimated cost of $2 billion with $1.6 billion credit from India’s EXIM Bank.
But the procurement proposition as claimed by the Indian side is highly disappointing and can’t be part of a fair loan agreement at all. A fair deal always provides the bigger facility for the host country or least ask the host country to surrender vital business interest. Bangladesh can’t be made fool; while many also question how such procurement clause can find way to loan agreement.
In our view India must prove itself a good friend of Bangladesh — not a trading partner to be taking every opportunity to squeeze the government for unfair benefit. India is not only pushing exports to Bangladesh enjoying duty-free access for almost all its products, it is also levying counter-veiling duty on Bangladesh’s exports clearly on unjustified ground. Garments and Jute products are facing such setback.
The trade gap with India is over 15 times now on India’s favour and yet they are looking for exploiting every opportunity – no matter how it impacts Bangladesh. No question of friendship is involved when our ability to protect our business interest is under challenge. It is a shame. We are bored with friendship discussions with India.
