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Tariff Commission for careful scrutiny of all relevant issues

September 14, 2009 00:00:00


Nazmul Ahsan
Bangladesh Tariff Commission (BTC) has suggested the government to conduct a cost-benefit analysis of transit, covering economic, social and political issues, prior to granting the facility to India, official sources said.
'We in the BTC are of the view that a multi-dimensional approach to the issue of transit appears to be more realistic proposition in as much as it takes care of a broader economic, social and political perspective,' reads the suggestion of the Commission, submitted to the Commerce Ministry in the first quarter of the current month.
The suggestions of the Commission came in response to requests from Commerce Minister Faruk Khan to give its observation on the transit between Bangladesh and India, sources said.
The Commission in its written suggestions said five major issues such as conceptualization of transit, benefit of transit, cost of transit, infrastructural requirement and costs involved for providing transit and requirement for Customs and other facilities for border agencies, need to be addressed clearly before taking a decision.
'There is a wide debate whether transportation of goods to and from the Northeastern states of India through the Bangladesh territory is transit or not. Some argue that it is essentially a corridor,' reads the paper of the Tariff Commission.
On the issue of cost of transit, the Commission cited a study report prepared by economist M.M. Akash in 1997.
According to Akash, problems like drug trafficking, national security, sovereignty, illegal trade and developments involving a possible Sino-Indian war might affect the interests of Bangladesh adversely if transit is given to India.
As per as benefit is concerned, the Commission, again citing the estimates of Akash, mentioned four sample estimates about revenue earnings ranging from Tk 7.0 billion to Tk 50 billion per annum for the country.
When asked, officials in the commerce ministry said they are now examining two issues raised by India on transit.
First, transit to India for movement of goods from the Northeastern part of India to other parts of India through the territory of the country.
Second, transit for movement of goods from the Northeastern part of India to other countries through the territory of the country using Chittagong port.
"I think scopes for further examination has become limited as the foreign ministers of Bangladesh and India have agreed to introduce transit facilities for India, Bangladesh, Nepal and Bhutan," a top official in the commerce ministry told the FE.
"We are waiting for political direction now."
Foreign Minister Dipu Moni agreed to provide India the access to Ashuganj as a new port of call and the use of Chittagong port to facilitate the transportation of Indian goods during a recent meeting with Indian External Affairs Minister S.M. Krishna in New Delhi, while Indian side agreed to facilitate Nepal-Bangladesh and Bhutan-Bangladesh connectivity.
'Both sides recognized the importance of bilateral and regional connectivity. In this context, both sides discussed designating Ashuganj as a new port of call under Article-23 of the Inland Water Transit and Trade Agreement as well as the use of Chittagong port by India. Bangladesh side agreed to provide access to Ashuganj Port to facilitate the transportation of over dimensional consignments for the Palatana Power Project in Tripura,' reads the joint press statement issued by the Indian foreign ministry on September 12 last.
The BTC suggested for the review all existing studies carried out on transit between the countries and undertake a fresh study on transit, which will cover economic, social and political issues.

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