Bangladesh-India agenda for discussion to expedite mutual and regional trade
Sunday, 24 April 2011
Manzur Ahmed
Indian Commerce and Industry Minister Anand Sharma during his stay in Bangladesh is expected to discuss issues of mutual interest relating to trade and business between the two countries to help boost bilateral trade and investment. Major areas for discussion, according to news reports, may include trade facilitation and elimination of trade barriers, duty-free market access for more Bangladesh export items, connectivity for speedy movement goods in the regional trade with Bhutan, Nepal, Bangladesh and the north-eastern states of India, regional energy trade, and mutual priorities from the services sector request lists (banking, insurance, construction and health areas of Bangladesh, accounting, auditing, urban planning, medical and dental services, advertising, electronic media, rail transport, pipeline transport, construction and related engineering services and investment in the country's financial sector) The Manmohan Singh-Sheikh-Hasina joint communiqué issued on January 12, 2010 in New Delhi has generated a great momentum and huge opportunity to further strengthen and promote Bangladesh-India bilateral and regional trade and economic relations. The two Prime Ministers agreed to put in place a comprehensive framework of cooperation for development encapsulating their mutually shared vision for the future, which would include, among others, cooperation in mutual trade and investment, water resources, power, transportation and connectivity, tourism and education. The strategic programmes of the Bangladesh-India economic development and trade facilitation agenda envisaged in the January 12, 2010 New Delhi declaration must be implemented in right earnest within end dates to boost mutual and regional trade and economic cooperation. The bilateral agenda, among others, include: n Transportation of ODCs (Over Dimensional Cargo) through Ashuganj-Akhaura-Agartala route. n To encourage imports from Bangladesh, both countries agreed to address removal of tariff and non-tariff barriers and port restrictions and facilitate movement of containerized cargo by rail and water. n India agreed to support upgrading of Bangladesh Standard Testing Institute with a view to building capacity on certification. n It was agreed to allow the use of Mongla and Chittagong seaports for movement of goods to, and from, India through road and rail. Similar access will be given to Nepal and Bhutan. n The Prime Ministers agreed that investments, including joint investment and joint ventures, should be encouraged by both countries. n The Prime Minister of India agreed to supply to Bangladesh 250 MW electricity from its grid. In this context, both Prime Ministers emphasized the need to expedite inter-grid connectivity. n They also agreed that the two countries shall cooperate in development and exchange of electricity, including generation from renewable sources, and may set up joint projects or corporate entities for that purpose. Both the governments should expeditiously follow-up the agreed agenda and also involve the private sector apex bodies of the countries in the entire process alongside the respective official wings to foster more substantive dynamism in operationalzing the agreed agenda of mutual economic development and trade facilitation. Both the governments of Bangladesh and India deserve appreciation for most rapid and successful implementation of decisions reached at the highest level in facilitating such a technically and logistically challenging task of successful transportation of the first consignment ODCs (326 MT Over Dimensional Cargo) for the Palatana Power Plant through Ashuganj to Agartala on March 28 this year. This is a very strong example and should be the trend-setter in the implementation of other agenda of regional cooperation. Similarly movement of goods for bilateral and international trade to, and from, India through road and rail to Mongla and Chittagong seaports with the development of the necessary capacity and infrastructure should facilitated. Similar access to and from Nepal and Bhutan through the territories of India and Bangladesh should also commence forthwith. For passage of goods for bilateral and international trade a regional transit and transport protocol should be adopted within an end date. The appropriate fees and charges for services rendered for the purpose should be determined on most favoured nation (MFN) basis by the respective governments in the light of WTO and WCO Annex-E provisions. On removal non-tariff barriers (NTBs) thanks to Indian National Accreditation Board for Calibration and Testing Laboratories (NABL) for according accreditation to the chemical, mechanical and biological laboratories of the BSTI on March 18, facilitating thereby Bangladesh Standards and Testing Institution (BSTI) to issue certificates on quality and standards on some products traded between the two countries. The BSTI has improved testing facility of 83 ingredients including food items, cement and textiles by setting up new machineries and necessary infrastructure. The newly installed Management System Certificate Programme of BSTI has already received accreditation from the Norwegian Accreditation Authority. Currently, the BSTI provides certificates on ISO 9000, ISO 14000 and ISO 22000. This is a solid big step forward towards removing NTBs in the region and beyond. The product coverage of BSTI certification jurisdiction should be progressively expanded with the continued cooperation of the Indian standards institutions. Accredited bodiesagencies of India may set up, like BSTI-NABL cooperation, laboratories and certification bodies in collaboration with the respective designated national agencies of Bangladesh or, in public private partnership (PPP) ventures in Bangladesh. On energy front, power lines are being built to transmit electricity across the borders and two Bangladesh-India joint ventures on coal-based power plants are also being set up which are already in the process of implementation. There is also a 100 KM pipeline project initially to export 10,000 million tons of high speed to Bangladesh from Assam. On bilateral and regional energy cooperation the 16th South Asian Association for Regional Cooperation (SAARC) summit declaration on energy can be and should be the launching pad for initiating the most prospective energy drive in the sub-Himalayan region to meet the ever-growing needs of Bangladesh, India, Nepal and Bhutan. The 16th SAARC summit declaration on energy: n "On energy sector, the leaders recognized the need to enhance cooperation in the energy sector to facilitate energy trade, development of efficient conventional and renewable energy sources including hydro-power. They emphasized the need to undertake studies to develop regional energy projects and promote regional power trade." n "A proposal from India for preparing a roadmap aimed at developing a SAARC market for electricity on a regional basis was noted, as SAARC is considering electricity trading, supported by enabling markets in the member states." Governments of Bangladesh, Bhutan India and Nepal should expedite serious talks on adoption of a regional energy cooperation framework to meet the growing energy demands of the region. Governments should take, on an urgent basis, effective steps to conclude a regional energy trade agreement among Bangladesh-India-Nepal-Bhutan to foster and facilitate regional energy trade including, among others, setting up of joint venture projects on hydro-electricity and renewable energy, regional connectivity and energy trade. Bangladesh-India Trade in Goods & Services: Bangladesh has a unilateral very liberal and open services and investment policy regime under its domestic regulations. India should be called upon to provide on a reciprocal basis services sector Mode 3 (commercial presence) and 4 (movement of workers) accesses to India along with an early harvest DFQFMA to all products exported from Bangladesh against its fully liberalized service sectors and investment regime. We strongly urge enactment of the Bangladesh -India Free Trade Accord (FTA) by 2011 with an early harvest DFQFMA for products originating from Bangladesh with exemption from all customs and other charges and duties with effect from the date of commencement of such FTA with at least five years transition period and greater flexibility and special and differential treatment for Bangladesh. Bangladesh-India Services Trade: India has sent a 'request list' to the Bangladesh for consideration under the SAARC Agreement on Trade in Services. It has sought government's policy decision on Indian investment in major areas of business in the country's services sector. The areas are: accounting, auditing, urban planning, medical and dental services, advertising, electronic media, rail transport, pipeline transport, construction and related engineering services and investment in the country's financial sector, including banking and insurance. On the other hand, Bangladesh already has a unilateral very liberal services and investment policy regime open on MFN basis under its domestic regulations. Bangladesh should therefore take the credit and claim on reciprocal basis services sector Mode 3 (commercial presence) and 4 (movement of workers) accesses from India along with an early harvest DFQFMA to all products exported from Bangladesh against its fully liberalized service sectors and investment regime. The terms of investment should be without prejudice to the rights and obligations under the World Trade Organisation (WTO) Agreements and SDT provisions including Genera Agreement on Trade in Services (GATS) LDC (least developed country) Modalities. It should be noted that service schedules apply on MFN basis without discrimination among the WTO member countries as prescribed in GATS. However, special terms may exclusively apply to members of the respective regional agreement. There is absolutely no scope and prudence to put up three schedules of commitment by Bangladesh for developed , developing and the least developed countries as reported in some national dailies. Bangladesh should apply its services sector investment policy regime on MFN basis under its domestic regulations only not by notification of its schedules of commitment. Response on the Indian request list on Services trade: The proposed Indian service sector investments should be governed by Bangladesh domestic regulations which applies on MFN basis for all WTO Members: Since there is absolutely no reason to provide in sectors requested by India any exclusive rights to all the South Asia Free Trade Agreement (SAFTA) member-countries, notification of the schedules of commitment under WTO GATS provisions is out of question. Bangladesh under its domestic services sector regulations has the grater option and more flexibility to promote services sector in Bangladesh through domestic and foreign investments on MFN basis. The issues to be considered and settled, before opening of these sectors on MFN basis only, are: Accounting & Auditing: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Harmonization of business practices and standards; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of Accountants & Auditors with higher [70 %] quota for Bangladesh; and, n Other terms of reciprocity and S& D treatment for Bangladesh. Urban planning: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Terms of Registration; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms of application in public procurement regulations; and n Terms of reciprocity and S& D treatment for Bangladesh. Medical and dental services: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Terms of Registration; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of doctors and workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh. Advertising: n The needs assessment study; n Terms of registration and taxation including under mode 1 electronic service delivery from across the border; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); and n Terms of reciprocity and S& D treatment for Bangladesh. Electronic media: n Terms of commercial presence and registration; n Terms of reciprocal aggregate coverage time in the respective country territory; n Terms of electronic media taxation (VAT and Income tax only as customs duty does not apply under WTO provisions); and n Terms of reciprocity and S& D treatment for Bangladesh. Rail transport: n The needs assessment study; n Terms of application of public procurement regulations; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Pipeline transport: n The needs assessment study; n Terms of application of public procurement regulation; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Construction and related engineering services: n The needs assessment study; n Terms of application of public procurement regulation; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Investment in financial sector, including banking and insurance: n The needs assessment study; n Insurance sector should remain restricted; n Terms of investment with minimum paid up capital requirement both in domestic and foreign currencies along with appropriate level of international credit rating; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of executives and workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. To foster and facilitate Bangladesh-India trade and economic cooperation for mutual benefit the SAARC Summit declarations on trade facilitations should be implemented within end date among others the following: Trade facilitation and elimination of trade barriers: n Harmonization of cross-border trade regulations, documents and daily weekly schedules of working hours (minimum 12 hours all seven days of the Week) by an end date; n Harmonized Tariff Nomenclature at eight digit level should be created based on the Harmonized Commodity Description and Coding Systems (HS) of the World Customs Organization by an end date; n Simplification of Customs procedures aimed at cutting the time taken and cost of transactions at each customs point. Regional customs action plan should be implemented by an end date; n Transport and communications infrastructures, port and warehousing facilities should be developed to benchmark levels within specified time frames; n On-line publication in designated focal points respective Tariff schedules, NTMs and regulations on Rules of origin, labeling requirements, Customs clearance and Appeal procedures by an end date (In compliance of Articles V, VIII and X of the GATT 1994); n Online publication in the designated focal point website of relevant trade regulations and procedures, including packaging & labeling requirements, fees and charges, in English. by an end date; n Customs clearance procedure: Value of imported products should be assessed only on the basis of WTO Customs Valuation Agreement. The practice of Indian Customs to determine the assessable value of the imported product by fixing 35% abatement on retail sales price and or on the basis of pre-fixed tariff value should be discontinued; n Fixing and printing 'Retail Sales Price' of the exported product to be sold in the importing country is an internal taxation measure and should be dealt with accordingly at the local marketing level; n Long term export and import contracts for public and private sector procurements should be encouraged and facilitated to expedite and sustain mutual trade support chain. MFN banrestriction imposed on export of any product may please be applied with flexibility in case of Bangladesh in the form of a reasonable quota; n Acceptance of certificates issued by the respective designated national institutions should be ensured in all ports of entry. BSTI has already secured Accreditation from NABL India; n Accredited BodiesAgencies of India may set up, like BSTI-NABL cooperation, accredited laboratories and certification bodies in collaboration with the Designated National Agency of Bangladesh or in PPP joint ventures in Bangladesh; n MFN and National treatment MFN and in addition S & D treatment should be accorded to all products, including drugs, cement, ceramics, food items jute and leather products, cosmetics & toiletries and other priorities, in respect of registration, packaging & labeling and testing requirements along with charges and fees thereof; n Fees levied should only be on the cost of services rendered and shall not be used for fiscal purposes or as protection to domestic products; n Import licensing: Bangladesh has a most transparent and automatic import licensing procedure and most liberal import policy. India should also adopt and notify non-restrictive, locally administered, automatic and transparent import licensing procedures for mutual trade with Bangladesh on a reciprocal basis by an end date (instead of Kolkata handling import licensing for Tripura licensing office should be opened in Agartala and state capitals in the north-eastern region); n Ensure exchange of information on the prevention and repression of smuggling, trafficking of narcotics and psychotropic substances, and other customs frauds; n Rights of transit and movement of vehicles through the territory of the second country to a third country, as per GATT Article V, should be ensured to facilitate India-Bangladesh-Nepal-Bhutan trade; n Appropriate transport and transit protocol with regulations on fees and charges with harmonized and simplified customs procedures, as prescribed in World Customs Organisation (WCO) Annex E, should be operationalized to expedite third country transit facilitating movement of goods and vehicles to and from Bangladesh through the territories of Nepal- Bhutan- India-Bangladesh and beyond; and Instant visa travel card with attested photograph should be issued with electronic machines installed at zero point which could register to-and-fro movement of Truckers and check any unauthorized crossing of the border. The writer is Chairman, Fare Trade Advocacy Centre. He can be reached at e-mail : a.manzur@yahoo.com
Indian Commerce and Industry Minister Anand Sharma during his stay in Bangladesh is expected to discuss issues of mutual interest relating to trade and business between the two countries to help boost bilateral trade and investment. Major areas for discussion, according to news reports, may include trade facilitation and elimination of trade barriers, duty-free market access for more Bangladesh export items, connectivity for speedy movement goods in the regional trade with Bhutan, Nepal, Bangladesh and the north-eastern states of India, regional energy trade, and mutual priorities from the services sector request lists (banking, insurance, construction and health areas of Bangladesh, accounting, auditing, urban planning, medical and dental services, advertising, electronic media, rail transport, pipeline transport, construction and related engineering services and investment in the country's financial sector) The Manmohan Singh-Sheikh-Hasina joint communiqué issued on January 12, 2010 in New Delhi has generated a great momentum and huge opportunity to further strengthen and promote Bangladesh-India bilateral and regional trade and economic relations. The two Prime Ministers agreed to put in place a comprehensive framework of cooperation for development encapsulating their mutually shared vision for the future, which would include, among others, cooperation in mutual trade and investment, water resources, power, transportation and connectivity, tourism and education. The strategic programmes of the Bangladesh-India economic development and trade facilitation agenda envisaged in the January 12, 2010 New Delhi declaration must be implemented in right earnest within end dates to boost mutual and regional trade and economic cooperation. The bilateral agenda, among others, include: n Transportation of ODCs (Over Dimensional Cargo) through Ashuganj-Akhaura-Agartala route. n To encourage imports from Bangladesh, both countries agreed to address removal of tariff and non-tariff barriers and port restrictions and facilitate movement of containerized cargo by rail and water. n India agreed to support upgrading of Bangladesh Standard Testing Institute with a view to building capacity on certification. n It was agreed to allow the use of Mongla and Chittagong seaports for movement of goods to, and from, India through road and rail. Similar access will be given to Nepal and Bhutan. n The Prime Ministers agreed that investments, including joint investment and joint ventures, should be encouraged by both countries. n The Prime Minister of India agreed to supply to Bangladesh 250 MW electricity from its grid. In this context, both Prime Ministers emphasized the need to expedite inter-grid connectivity. n They also agreed that the two countries shall cooperate in development and exchange of electricity, including generation from renewable sources, and may set up joint projects or corporate entities for that purpose. Both the governments should expeditiously follow-up the agreed agenda and also involve the private sector apex bodies of the countries in the entire process alongside the respective official wings to foster more substantive dynamism in operationalzing the agreed agenda of mutual economic development and trade facilitation. Both the governments of Bangladesh and India deserve appreciation for most rapid and successful implementation of decisions reached at the highest level in facilitating such a technically and logistically challenging task of successful transportation of the first consignment ODCs (326 MT Over Dimensional Cargo) for the Palatana Power Plant through Ashuganj to Agartala on March 28 this year. This is a very strong example and should be the trend-setter in the implementation of other agenda of regional cooperation. Similarly movement of goods for bilateral and international trade to, and from, India through road and rail to Mongla and Chittagong seaports with the development of the necessary capacity and infrastructure should facilitated. Similar access to and from Nepal and Bhutan through the territories of India and Bangladesh should also commence forthwith. For passage of goods for bilateral and international trade a regional transit and transport protocol should be adopted within an end date. The appropriate fees and charges for services rendered for the purpose should be determined on most favoured nation (MFN) basis by the respective governments in the light of WTO and WCO Annex-E provisions. On removal non-tariff barriers (NTBs) thanks to Indian National Accreditation Board for Calibration and Testing Laboratories (NABL) for according accreditation to the chemical, mechanical and biological laboratories of the BSTI on March 18, facilitating thereby Bangladesh Standards and Testing Institution (BSTI) to issue certificates on quality and standards on some products traded between the two countries. The BSTI has improved testing facility of 83 ingredients including food items, cement and textiles by setting up new machineries and necessary infrastructure. The newly installed Management System Certificate Programme of BSTI has already received accreditation from the Norwegian Accreditation Authority. Currently, the BSTI provides certificates on ISO 9000, ISO 14000 and ISO 22000. This is a solid big step forward towards removing NTBs in the region and beyond. The product coverage of BSTI certification jurisdiction should be progressively expanded with the continued cooperation of the Indian standards institutions. Accredited bodiesagencies of India may set up, like BSTI-NABL cooperation, laboratories and certification bodies in collaboration with the respective designated national agencies of Bangladesh or, in public private partnership (PPP) ventures in Bangladesh. On energy front, power lines are being built to transmit electricity across the borders and two Bangladesh-India joint ventures on coal-based power plants are also being set up which are already in the process of implementation. There is also a 100 KM pipeline project initially to export 10,000 million tons of high speed to Bangladesh from Assam. On bilateral and regional energy cooperation the 16th South Asian Association for Regional Cooperation (SAARC) summit declaration on energy can be and should be the launching pad for initiating the most prospective energy drive in the sub-Himalayan region to meet the ever-growing needs of Bangladesh, India, Nepal and Bhutan. The 16th SAARC summit declaration on energy: n "On energy sector, the leaders recognized the need to enhance cooperation in the energy sector to facilitate energy trade, development of efficient conventional and renewable energy sources including hydro-power. They emphasized the need to undertake studies to develop regional energy projects and promote regional power trade." n "A proposal from India for preparing a roadmap aimed at developing a SAARC market for electricity on a regional basis was noted, as SAARC is considering electricity trading, supported by enabling markets in the member states." Governments of Bangladesh, Bhutan India and Nepal should expedite serious talks on adoption of a regional energy cooperation framework to meet the growing energy demands of the region. Governments should take, on an urgent basis, effective steps to conclude a regional energy trade agreement among Bangladesh-India-Nepal-Bhutan to foster and facilitate regional energy trade including, among others, setting up of joint venture projects on hydro-electricity and renewable energy, regional connectivity and energy trade. Bangladesh-India Trade in Goods & Services: Bangladesh has a unilateral very liberal and open services and investment policy regime under its domestic regulations. India should be called upon to provide on a reciprocal basis services sector Mode 3 (commercial presence) and 4 (movement of workers) accesses to India along with an early harvest DFQFMA to all products exported from Bangladesh against its fully liberalized service sectors and investment regime. We strongly urge enactment of the Bangladesh -India Free Trade Accord (FTA) by 2011 with an early harvest DFQFMA for products originating from Bangladesh with exemption from all customs and other charges and duties with effect from the date of commencement of such FTA with at least five years transition period and greater flexibility and special and differential treatment for Bangladesh. Bangladesh-India Services Trade: India has sent a 'request list' to the Bangladesh for consideration under the SAARC Agreement on Trade in Services. It has sought government's policy decision on Indian investment in major areas of business in the country's services sector. The areas are: accounting, auditing, urban planning, medical and dental services, advertising, electronic media, rail transport, pipeline transport, construction and related engineering services and investment in the country's financial sector, including banking and insurance. On the other hand, Bangladesh already has a unilateral very liberal services and investment policy regime open on MFN basis under its domestic regulations. Bangladesh should therefore take the credit and claim on reciprocal basis services sector Mode 3 (commercial presence) and 4 (movement of workers) accesses from India along with an early harvest DFQFMA to all products exported from Bangladesh against its fully liberalized service sectors and investment regime. The terms of investment should be without prejudice to the rights and obligations under the World Trade Organisation (WTO) Agreements and SDT provisions including Genera Agreement on Trade in Services (GATS) LDC (least developed country) Modalities. It should be noted that service schedules apply on MFN basis without discrimination among the WTO member countries as prescribed in GATS. However, special terms may exclusively apply to members of the respective regional agreement. There is absolutely no scope and prudence to put up three schedules of commitment by Bangladesh for developed , developing and the least developed countries as reported in some national dailies. Bangladesh should apply its services sector investment policy regime on MFN basis under its domestic regulations only not by notification of its schedules of commitment. Response on the Indian request list on Services trade: The proposed Indian service sector investments should be governed by Bangladesh domestic regulations which applies on MFN basis for all WTO Members: Since there is absolutely no reason to provide in sectors requested by India any exclusive rights to all the South Asia Free Trade Agreement (SAFTA) member-countries, notification of the schedules of commitment under WTO GATS provisions is out of question. Bangladesh under its domestic services sector regulations has the grater option and more flexibility to promote services sector in Bangladesh through domestic and foreign investments on MFN basis. The issues to be considered and settled, before opening of these sectors on MFN basis only, are: Accounting & Auditing: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Harmonization of business practices and standards; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of Accountants & Auditors with higher [70 %] quota for Bangladesh; and, n Other terms of reciprocity and S& D treatment for Bangladesh. Urban planning: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Terms of Registration; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms of application in public procurement regulations; and n Terms of reciprocity and S& D treatment for Bangladesh. Medical and dental services: n The needs assessment study; n Mutual recognition of certificates of qualifications; n Terms of Registration; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of doctors and workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh. Advertising: n The needs assessment study; n Terms of registration and taxation including under mode 1 electronic service delivery from across the border; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); and n Terms of reciprocity and S& D treatment for Bangladesh. Electronic media: n Terms of commercial presence and registration; n Terms of reciprocal aggregate coverage time in the respective country territory; n Terms of electronic media taxation (VAT and Income tax only as customs duty does not apply under WTO provisions); and n Terms of reciprocity and S& D treatment for Bangladesh. Rail transport: n The needs assessment study; n Terms of application of public procurement regulations; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Pipeline transport: n The needs assessment study; n Terms of application of public procurement regulation; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Construction and related engineering services: n The needs assessment study; n Terms of application of public procurement regulation; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. Investment in financial sector, including banking and insurance: n The needs assessment study; n Insurance sector should remain restricted; n Terms of investment with minimum paid up capital requirement both in domestic and foreign currencies along with appropriate level of international credit rating; n Terms for commercial presence (exclusively through [50-50] joint ventures operating in both the countries); n Terms for temporary presence of executives and workers with higher [70 %] quota for Bangladesh; and n Terms of reciprocity and S& D treatment for Bangladesh including technical and financial assistance. To foster and facilitate Bangladesh-India trade and economic cooperation for mutual benefit the SAARC Summit declarations on trade facilitations should be implemented within end date among others the following: Trade facilitation and elimination of trade barriers: n Harmonization of cross-border trade regulations, documents and daily weekly schedules of working hours (minimum 12 hours all seven days of the Week) by an end date; n Harmonized Tariff Nomenclature at eight digit level should be created based on the Harmonized Commodity Description and Coding Systems (HS) of the World Customs Organization by an end date; n Simplification of Customs procedures aimed at cutting the time taken and cost of transactions at each customs point. Regional customs action plan should be implemented by an end date; n Transport and communications infrastructures, port and warehousing facilities should be developed to benchmark levels within specified time frames; n On-line publication in designated focal points respective Tariff schedules, NTMs and regulations on Rules of origin, labeling requirements, Customs clearance and Appeal procedures by an end date (In compliance of Articles V, VIII and X of the GATT 1994); n Online publication in the designated focal point website of relevant trade regulations and procedures, including packaging & labeling requirements, fees and charges, in English. by an end date; n Customs clearance procedure: Value of imported products should be assessed only on the basis of WTO Customs Valuation Agreement. The practice of Indian Customs to determine the assessable value of the imported product by fixing 35% abatement on retail sales price and or on the basis of pre-fixed tariff value should be discontinued; n Fixing and printing 'Retail Sales Price' of the exported product to be sold in the importing country is an internal taxation measure and should be dealt with accordingly at the local marketing level; n Long term export and import contracts for public and private sector procurements should be encouraged and facilitated to expedite and sustain mutual trade support chain. MFN banrestriction imposed on export of any product may please be applied with flexibility in case of Bangladesh in the form of a reasonable quota; n Acceptance of certificates issued by the respective designated national institutions should be ensured in all ports of entry. BSTI has already secured Accreditation from NABL India; n Accredited BodiesAgencies of India may set up, like BSTI-NABL cooperation, accredited laboratories and certification bodies in collaboration with the Designated National Agency of Bangladesh or in PPP joint ventures in Bangladesh; n MFN and National treatment MFN and in addition S & D treatment should be accorded to all products, including drugs, cement, ceramics, food items jute and leather products, cosmetics & toiletries and other priorities, in respect of registration, packaging & labeling and testing requirements along with charges and fees thereof; n Fees levied should only be on the cost of services rendered and shall not be used for fiscal purposes or as protection to domestic products; n Import licensing: Bangladesh has a most transparent and automatic import licensing procedure and most liberal import policy. India should also adopt and notify non-restrictive, locally administered, automatic and transparent import licensing procedures for mutual trade with Bangladesh on a reciprocal basis by an end date (instead of Kolkata handling import licensing for Tripura licensing office should be opened in Agartala and state capitals in the north-eastern region); n Ensure exchange of information on the prevention and repression of smuggling, trafficking of narcotics and psychotropic substances, and other customs frauds; n Rights of transit and movement of vehicles through the territory of the second country to a third country, as per GATT Article V, should be ensured to facilitate India-Bangladesh-Nepal-Bhutan trade; n Appropriate transport and transit protocol with regulations on fees and charges with harmonized and simplified customs procedures, as prescribed in World Customs Organisation (WCO) Annex E, should be operationalized to expedite third country transit facilitating movement of goods and vehicles to and from Bangladesh through the territories of Nepal- Bhutan- India-Bangladesh and beyond; and Instant visa travel card with attested photograph should be issued with electronic machines installed at zero point which could register to-and-fro movement of Truckers and check any unauthorized crossing of the border. The writer is Chairman, Fare Trade Advocacy Centre. He can be reached at e-mail : a.manzur@yahoo.com