BD, Bhutan to ink separate deal on trade in service

Bangladesh and Bhutan have decided to sign a separate deal on trade in service without incorporating it in the bilateral trade agreement, scheduled to be renewed next month, official sources said.
Bangladesh wanted to incorporate trade-in-service in and bring some amendments to the existing bilateral trade agreement during the renewal time to make the pact further trade-friendly.
However, Bhutan opined that a separate agreement on trade in service could be signed between the two countries which trade officials in Dhaka found logical.
In line with Bhutan's proposal, Bangladesh has decided to sign separate pact on trade-in-service and renew the existing bilateral trade deal without incorporating the issue, said an official.
In global trade, the trade-in-service refers to sale and delivery of an intangible product, called a service, between a producer and a consumer. Trade-in-service takes place between a producer and a consumer who are based in different countries, or economies, and is called International Trade-in-Service.
Additional secretary of the Ministry of Commerce (MoC) Monoj Kumar Roy told the FE some amendments will be brought while renewing the bilateral agreement next month.
He said the amendments include formation of joint working group, incorporation of scope and ways to amend rules of the pact, exchange of trade-related information, organising trade fairs, establishing relations between trade bodies of the two sides, research aiming at expansion of trade, and automatic renewal of the deal.
Sources said neither Bangladesh nor Bhutan has proposed amendment of the existing protocol. Thus, the protocol will be renewed without change.
The bilateral agreement, which was first signed in 1980, expired on November 6 last. Last April, the commerce secretaries of the two countries agreed to renew the deal with necessary amendments. Last time, the pact was renewed in 2003.
Officials said the bilateral accord may be renewed early December when Bhutanese Prime Minister Tshering Tobgay visits Bangladesh. Bangladesh is taking preparation in this regard and an approval relating to the proposed renewal of the pact will be taken from the cabinet soon.      
Meantime, in line with the schedule of the agreement, Bhutan granted duty-free market access to 90 Bangladeshi products.
On the other hand, Bangladesh granted duty-free market access to 18 Bhutanese products.
A senior MoC official said the proposed changes in the agreement will help boost trade volume between the two countries. He said the two-way trade is still very nominal which is highly tilted towards Bhutan. In fiscal year 2013-14, Bangladesh exported goods worth US$1.91 million to Bhutan while its import from that country was worth $22.50 million.
Bangladesh mainly exports fruit juice, garments, melamine products, pharmaceuticals, and cosmetics to Bhutan while it imports fruits, construction materials, raw materials of cement, and spices.

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