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BD-India water transit deal renewal becomes uncertain

Syful Islam | May 30, 2015 00:00:00


The renewal of the Indo-Bangladesh water-transit protocol has become uncertain with Delhi disagreeing to allow the passage of goods to third countries through its land, pay levies to Dhaka for such transit and raise the maintenance cost of protocol routes, officials said.

The Protocol on Inland Water Transit and Trade (PIWTT) is scheduled to be signed during the Dhaka visit of Indian Prime Minister Narendra Modi on June 6-7.

During the shipping secretary-level meeting in New Delhi on April 20 this year, the two sides had agreed to amend the PIWTT in line with the bilateral trade agreement.

Thereafter, the ministry of shipping (MoS) brought amendment to the PIWTT in the light of the finalised bilateral trade agreement and sent it to India for approval on May 14.

The changes were made after the MoS got the draft of the amended PIWTT vetted by the law ministry and also took approval from the cabinet on May 18.

However, the Indian High Commission in Dhaka on May 19 sent back the draft with note of dissent with the nitty-gritty of the proposed amendment.

In the draft Bangladesh proposed to incorporate the provision of allowing goods of one country into third countries using the territory of the other. Under the existing protocol both parties can carry goods between two places in one country using other's territory.  However, they are not allowed to carry goods to third countries using other's territory.

Officials said for the bilateral trade pact India recently agreed to amend the provision allowing the carrying of goods to third countries using other's territory, but in case of PIWTT it is now not agreeing with such transit facility.

Sources said in the draft the Bangladesh side also proposed to incorporate a paragraph stating "In such cases, fees and charges, if leviable as per international agreements, conventions or practices, may be applied and transit-guarantee regime may be established through mutual consultations".

But India suggested that the paragraph should be omitted from the draft.

Sources said India pays Bangladesh Tk 100 million per annum for the maintenance of the river routes under a clause of the PIWTT.

They said since the tenure of the amended PIWTT is going to be five years with a provision of auto-renewal, Bangladesh has proposed to incorporate a paragraph stating "The sum may be enhanced considering prevailing market pries of operational aspects as and when required on mutual agreement".

India won't agree on this point in the transit deal.

Sources said deputy secretary of shipping ministry Delwar Haider informed the ministry of foreign affairs (MoFA) recently that the draft of the PIWTT was finalised through inert-ministerial meeting, vetted by law ministry, and later approved by the cabinet.

"Bringing amendment to the final draft would be complicated, take time, and contradict the bilateral trade agreement," he said, requesting the MoFA to inform the Indian side about this.

Sources said the MoFA and the MoS had not heard anything from the Indian side until Thursday (May 28).

When contacted, shipping secretary Shafique Alam Mehdi did not answer any question regarding the latest disagreement on amendment to the PIWTT.

He, however, said the protocol will be signed for five years. "There is nothing in the proposed amendment that can harm our country's interest."

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