New Delhi is now awaiting an early decision from Dhaka on a proposed bilateral Motor Vehicles Agreement (MVA) that will enable vehicles from both the countries to enter and ply inside their territories.
The Indian road transport and highways ministry recently forwarded a letter to its external affairs ministry which was later sent to the Bangladesh foreign ministry, sources said.
A high official of the foreign ministry said they have received a letter in this connection.
A bilateral Motor Vehicles Agreement (MVA) was actually discussed in 2011, when Indian Prime Minister Manmohan Singh visited Bangladesh and met his counterpart Sheikh Hasina.
The matter was also discussed during the bilateral meeting between the two Prime Ministers on the sidelines of the United Nations General Assembly (UNGA) in New York, according to an official requesting anonymity.
But Bangladesh did not consider the issue further as India could not approve land border and Teesta river water sharing agreements.
"The proposed MVA can not be discussed separately because Bangladesh and India have a package of deals and agreements which are interlinked with each other," the official added.
Besides, such an agreement needs approval from the Cabinet.
At present, vehicles carrying cargo from both the sides have to unload the goods at border check posts. The goods are then transferred to vehicles of the importing country for onward transportation to their destinations.
Unloading and loading, combined with rapid rise in bilateral trade growth that has crossed $6 billion, have caused massive congestion at the border, especially at the land custom stations or integrated check posts. This also takes a toll on trade transaction and freight costs of exporters and importers.
For example, if a truck from Bangladesh carrying garments has to deliver a consignment in Mumbai, it will be allowed to drive up to the destination and unload the shipment there. Similar procedure will be followed for Indian container trucks. The official said this will not only help reduce the heavy congestion on the border, but also it will address the inadequate infrastructure problems that create a lot of hassles for exporters on both the sides.
If both the countries agree, it will significantly bring down trade costs and speed up goods movement between the two countries.
It won't be the first time that India makes a unilateral offer to Bangladesh. Under the South Asian Free Trade Area (SAFTA) agreement, India provides duty-free and quota-free access to all but 25 products to its market.
Bilateral trade between India and Bangladesh reached $5.14 billion in 2012-2013 from $3.78 billion in 2011-2012 and $3.24 billion in 2010-2011.
Delhi awaits Dhaka\\\'s decision on Motor Vehicles Agreement
Jasim Khan | Published: March 08, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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