A state agency has suggested seeking further clarification from Delhi of the proposed concept note on harmonisation of product standards to remove major non-tariff barriers between Bangladesh and India.
Sources said the neighbouring nation, India, earlier sent the concept note styled 'Harmonisation of Technical Regulations'.
Dhaka is currently reviewing the issue.
The Trade and Tariff Commission said, "To determine the country's position and future course of action to proceed with the concept note, clarification is required on the issues, including technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures."
Additional clarification is required on the expected outcome of a probable agreement on the issue, it adds.
When asked, a senior commerce ministry official said, "We're expecting to finalise the concept note within two or three days before sending it to New Delhi."
According to the note, "If the current trend of increasing coverage of TBT and SPS measures continues in the coming years, exporters from both countries may face greater challenges in addressing them."
Against this backdrop, efforts by Delhi and Dhaka to pursue continuous, enhanced cooperation in harmonising the measures in question would help boost bilateral trade and economic ties, it adds.
The official said, "We're working together for mutual alignment of standards in various product sectors with significant trade interest for both countries."
According to the official, different product standards are considered a major non-tariff barrier hindering trade from reaching its full potential between Bangladesh and India.
"Harmonisation of standards is the key to further increase trade between the two neighbouring countries."
"We're nearing the final stage of resolving the issue. We have already held a meeting on the matter," the official added.
Standard marks or certifications issued by the Bangladesh Standards and Testing Institution (BSTI) and the Bureau of Indian Standards (BIS) are not the same, according to a trade official.
For this, he said, the two countries were facing complexities related to non-tariff barriers during product imports and exports.
The bilateral trade volume between the two nations currently exceeds $16 billion.
The official said harmonisation of SPS measures and related standards was also necessary to reduce the impact of existing non-tariff barriers.
He suggested that mutual recognition of standards be adopted by the respective accredited certification bodies like the BSTI and the BIS.
According to an expert, to minimise trade complexities and reap maximum benefits, Bangladesh and India should sign the proposed Comprehensive Economic Partnership Agreement (CEPA) for comprehensive negotiations.
Since the early 1990s, both countries have undertaken various initiatives to expand their economic and trade ties.
These include a transit treaty, duty-free and quota-free access for Bangladeshi products to the Indian market and an Agreement on the South Asia Free Trade Area (SAFTA) as mentioned in the concept note.
Smoother market access for goods and the development of cross-border and regional value chains offer huge potential to promote deeper trade integration between India and Bangladesh, boosting bilateral trade and enabling closer economic integration within the South Asian region.
As a trade bloc, the Association of South-East Asian Nations (ASEAN) has undertaken a similar exercise by harmonising standards for 20 priority products.
"As a way forward, relevant authorities from India and Bangladesh can identify a priority list of mutually beneficial products facing non-tariff barriers related to sanitary and phytosanitary and technical barriers to trade measures, where harmonising regulatory measures could open market access," reads the document.
Expert agencies managing regulations could then examine the barriers and restrictions identified by exporters for these priority commodities.
These barriers could range from product-level manufacturing standards and complex certification processes to testing and registration requirements.
After a detailed examination of the commodities and their corresponding barriers, the authorities from both countries could explore and collaboratively agree upon potential solutions for resolving these obstacles.
In bilateral trade, the technical and sanitary measures are governed by agreements between the countries under the World Trade Organisation (WTO).
Trade regulations are often enforced to address health, safety and quality concerns, ensuring that products, whether domestically manufactured or imported, comply with local regulations.
Similarly, sanitary measures are generally enforced to protect human, animal and plant life or health.
The document says, "While the objectives and policy goals behind implementing technical and sanitary measures may be similar for both countries, it has been observed that countries often adopt different forms of standards, regulations and conformity assessment procedures to achieve these objectives."
During implementation, it adds, complying with these diverse requirements can be challenging for market players due to information asymmetry, onerous licensing or authorisation requirements and conformity assessment procedures.
"This can lead to inefficiencies, increased costs, adverse impact on ease on doing business and impede trade. Therefore, there is a growing recognition among countries to pursue mechanisms that can harmonise regulations without compromising on regulatory objectives and policy goals," concludes the document.
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