Walking the talk

---

Mahmudur Rahman
The recent visit of the Federation of the Indian Chambers of Commerce & Industry (FICCI) delegation was, as expected widely publicised and was also the subject of several on-the-spot analysis from think-tanks. The outcomes were pretty predictable. More opportunities for joint ventures were required, new windows opened up to allow both-way trade and a general bonhomie of emotional bonding. Delegations that made such visits to either side of the border didn't have too many differences of opinion on how to address the massively India-tilted trade deficit.
But the chief of the delegation had one new angle this time around. He was of the opinion that more investment by Indian companies in industries to be set up in Bangladesh could address the yawning gap. The proposition shrewdly side-steps the usual issues that always bedevil Indo-Bangla trade talks. Beneath the well-crafted official statements lies one word that has always defined the source of the trade gap-protectionism. For all the back-slapping support proffered, Bangladeshi companies successful in exporting to other countries just cannot make full headway into India.
Bangladeshi produced beverages can be found in a few shops both in Kolkata and in the border areas of the seven sister states but that's where it ends. Rahimafruz Bangladesh was hit with the "dumping" charge when they attempted to sell their batteries and tyres in India. Then again furniture manufacturer Otobi has opened up an outlet in Kolkata that has already caught the imagination of the consumer, both in terms of quality and price. Perhaps there is also the possibility of Bangladeshi entrepreneurs opening up industries in India and we know quite a few are capable of doing just that.
On the flip side, almost every conceivable consumer product from India finds its way into the Bangladesh market, some of it through official imports and most through 'unofficial' channels. Golam Mostafa of Kollol Group laments that though his company has not opened a single letter of credit (LC) in the last four years as the official importer of Cadbury Chocolates from India, the product is merrily available in the country.
Such is the unabashed flouting of rules, that the products do not even pretend to hide the Indian MRP prices and validity dates that are compulsory in India. With most goods from other countries, there is a requirement for products to carry Bangladeshi prices and validity dates as well as the name and address of the importer. Not so in the case of most Indian products. It's almost as if such imports are not official cross border trade but merely travelling in-land. As per law, such products are also required to carry the Bangladesh Standards and Testing Institute approval seal on them. One remembers the government drive that forced a number of consumer products off the shelves of the large stores.
Given the volume consumption the revenue implications are likely to be significant and could well be to the advantage of the taxman in his struggle to cope with falling import duties. With the government poised to launch a drive against adulterated food, maybe the commerce ministry would do well to begin weeding out illegal imports as well. The writer is a former head of corporate and regulatory affairs of British-American Tobacco Bangladesh and former CEO of Bangladesh Cricket Board. (He can be reached at mahmudrahman@gmail.com)