FBCCI chief seeks Indian businesses' help to resolve 'Tipaimukh' issue

---

FE Report
Businesspeople of South Asia including Bangladesh and India should unite to face problems like Tipaimukh dam, said president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Annisul Huq on Monday.
"If problems like Tipaimukh come up businesspeople should be vocal and stand shoulder to shoulder to protect common interests," the Bangladeshi apex trade body chief said.
He was speaking at the inaugural ceremony of the conference on Bangladesh-India Economic Relations at a city hotel organised jointly by the FBCCI and Federation of Indian Chambers of Commerce and Industry (FICCI) and attended by over 50 Indian delegates, among others.
"Businesspeople should take advantage of common spirit and decide the pace and face of the economies," he said.
The FBCCI chief said multiple hurdles have to be crossed and trust among the countries must be built with good intention.
"We certainly need to ensure a significant reduction to non-tariff barriers that threatens bigger opportunities of growth," Mr Huq said.
Commerce Minister M Faruk Khan as chief guest said it is very much possible to establish direct 'connectivity' between Bangladesh and India to increase trade between the two countries.
"The governments of the two countries need to change their mindset and attitude to make it physically possible," he said.
There is no attitudinal problem of the people of South Asia rather the problem lies with the governments, the commerce minister said.
"Politicians are the biggest barriers to regional cooperation as they have confrontational mindset," he said.
There are some small unresolved problems between the two neighbouring countries which can be solved with 'political will,' he added.
"Trade was never used as tools of development in the region rather it was used as tools of politics," Mr Faruk lamented.
The businessmen in the region should put pressure on their respective governments to increase cooperation in South Asia, he added.
Indian High Commissioner to Bangladesh Pinak Ranjan Chakrabarty said there is a significant trade imbalance between Bangladesh and India.
The Indian envoy said he favours three to five years multiple entry visa for businesspeople and Bangladesh officials could discuss the issue with their Indian counterparts.
"But at the same time one should understand the Indian security concerns," he said.
Vice president of the FICCI Harsh C Mariwala said if Chittagong port is opened for Indian cargo, it would have multiple effects on bilateral relations.
He put forward some suggestions to double bilateral trade by 2011.
"Reduction in tariff level on both sides, creating transit facility for promoting trade, maintaining and developing infrastructure, simplifying pre-shipment inspection system and testing facilities are needed to increase trade," he said.
Secretary general of the FICCI Amit Mittra said trust is needed for cooperation among the regional countries.
"Remove the perceptional and structural barriers to enhance trade in the region," he said.
Representatives from textiles, banking, paints and chemicals and other sectors have been included in the Indian trade delegation.
Meanwhile, in the pleniary session of the conference speakers underscored the need to remove tariff and non-tariff barriers as well as enhance banking facilities to promote cross-border trade between India and Bangladesh.
They also stressed the need to increase air connectivity and introduction of container service for cost effective business environment between the two countries.
ML Debnath, president of Tripura Chamber of Commerce and Industry, moderated the session.
The speakers, pointed to the role the FICCI and the FBCCI can take to convince their respective governments to do the needful in this regard.
Addressing the conference Sanjay Prakash, chief executive officer of the HSBC, said settlement of tariff and non-tariff barriers would expedite cross-border trade.
He said greater regional alignment would be important to enable duty-free access, enhance cross-border trade and reduce the trade gap between the two countries.
Currently Bangladesh trade gap with India stands at around US$3.0 billion until 2008.
Prakash said emerging supply chain dynamics could be an appealing factor towards competitive access of Bangladeshi garment products to Indian market.
Addressing the conference Mustafa Abid Khan, joint chief of Bangladesh Tariff Commission, said India advocates for the concerns of the developing countries, while Bangladesh for the cause of least developed countries (LDCs).
While presenting a paper on border trade and non-tariff barriers, Abid said a concept paper regarding establishing a border 'haat' is being reviewed by different ministries.
He said establishment of border haat requires addressing the issues like security, customs duty, place, commodity coverage and mode of exchange.
Abid said Bangladesh has a plan to develop infrastructure facilities of twelve land customs stations (LCSs).
"India has reportedly taken initiative to improve LCSs though there is no synchronised approach in development activities," he noted.
AK Aggrawal, director of Vimal Organics of Uttar Pradesh of India, said travel facilities between Bangladesh and India should be increased to promote trade and reduce trade gap.
He urged Bangladesh government to organise container handling facilities at Benapole initially and at other rail points gradually.
"This will reduce the cost of imports into Bangladesh," he observed.
He also said there is a total lack of banking facilities between the two countries.
"Even though, there are some branches of State Bank of India in Bangladesh, can the bank boast of some letter of credits they have opened on behalf of Bangladeshi importers in favour of Indian exporters, or vice versa for Sonali Bank?" he added.