Dhaka is reconsidering minimum import price (MIP) of some products as India said its exports to Bangladesh hit hindrance following a pricing order, officials said.
The statutory regulatory order (SRO) was issued in July last year which had modified MIP of some products, including bicycles, ceramic sanitary products, and leaf springs.
"The issuance of the order had an adverse impact on Indian exports to Bangladesh of several products," Indian commerce secretary Rita Teaotia wrote to her counterpart in Dhaka recently.
Delhi said the MIP set through the SRO was non-compliant with the WTO (World Trade Organisation) rules and issued to obstruct its export to Bangladesh.
A senior official at the ministry of commerce (MoC) in Dhaka told the FE India claims that the MIP for the country was set higher than the MIP for similar products in case of China.
The MoC in a recent meeting decided that the national board of revenue (NBR) will be requested to revisit the prices of the products in question in case of import from India.
"We want a non-discriminatory MIP is set for all," said the official, seeking anonymity.
According to officials, the MIP was fixed to avoid possible under-invoicing of products at import stage and to avoid the dumping of any goods by any country into Bangladesh.
They said if no minimum import prices were set, any country could take the advantage of exporting any goods to Bangladesh at low prices to harm the local industry.
Asked whether there is any such barrier imposed by India in case of Bangladeshi products' export, another official said there are various types of non-tariff and para-tariff barriers blocking Bangladesh's exports.
Citing an example the official said India in January this year imposed anti-dumping duties between US$19 and $352 per tonne on import of jute and jute goods from Bangladesh.
In April this year, Delhi also imposed anti-dumping duties ranging between $27.81 and $91.47 per tonne on hydrogen peroxide imports from Bangladesh. They had also imposed anti-dumping duty on export of lead- acid batteries more than a decade ago.
The official said Bangladesh had never levied anti-dumping duty in the name of protecting local industries.
Commerce secretary-in-charge Shubhashish Bose could not be contacted for a comment despite several attempts.
The two-way trade between Bangladesh and India amounted to over US$6.0 billion with the balance heavily tilted towards India. In fiscal year 2015-16 Bangladesh exported goods worth $689 million to India and imported goods worth $5.452 billion from there.
Bangladesh mainly exports woven garments, knitwear, home textiles, agricultural products, frozen foods, leather and leather products, footwear, raw jute, jute goods, and bicycle.
On the other hand, the country imports cotton, cotton yarn, cotton fabrics, vehicles, nuclear reactor, boilers, machinery and mechanical appliances, cereals, edible vegetables, iron and steel among others.
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