BSTI testing should be of high standard: Indian envoy
Wednesday, 16 September 2009
FE Report
Indian High Commissioner Pinak Ranjan Chakravarty said Tuesday that the certificates issued by Bangladesh Standards and Testing Institution (BSTI) should be of such high standard that Bangladeshi exportable products would not require further verifications tests.
His comments came in the wake of local businessmen's claims that tests of Bangladeshi exportable products conducted in foreign soil have been delaying the clearance of their consignments.
The Indian high commissioner was speaking at the exhibition-cum-buyer-seller meet jointly organised by Dhaka Chamber of Commerce and Industry (DCCI) and Chemical and Allied Products Export Promotion Council (CAPEXIL), India in Dhaka.
A 20-member Indian business delegation was Tuesday in the city to showcase their products and engage in talks with prospective Bangladesh buyers.
Pinak said the existing industry-to-industry contact between Bangladesh and India signals future stronger economic ties.
"India attaches utmost importance to Bangladesh. We are confident that bilateral relations with the country will deepen in the coming years."
The diplomat also recognised the existing trade imbalance between two countries, which is now around $3 billion.
"But there is no need to be upset as Bangladesh has such trade imbalance with many other countries."
He said the trade gap between the two economies is shrinking day by day. "The export from Bangladesh to India was $60 million which is now around $300 million. It indicates that the gap is reducing."
"It will take time. The efforts to reduce trade gap between two countries must be driven by investment."
The two countries have signed a bilateral agreement in February 2009, which will augment India's investment in Bangladesh, he said.
Pinak said Indian investors have opportunities to invest in Bangladesh. "They can set up plants here. Afterwards, they will be able to sell their products in the eastern region of India."
"They should put emphasis on joint ventures as mere selling of goods will only widen the trade gap."
Pinak suggested the certification system of BSTI should be of global standard so that Bangladeshi exportable products do not require to be tested further.
On laboratory test of Bangladeshi exportable products, he said: "It takes time as some laboratories are not located near the borders."
Dipankar Talukder, state minister for CHT Affairs, said Indian investors can invest in the country's power and energy sectors as the present government plans to add 5,000 and 7,000 megawatt of electricity to its existing capacity by 2011 and 2013 respectively.
"They also can invest in light engineering, pharmaceuticals textiles, jute and jute goods sectors," he said.
Zafar Osman, president of DCCI, said the trade gap between Bangladesh and India should be reduced to strengthen the bilateral economic ties as the trade is heavily weighted in favour of New Delhi.
He said Bangladesh has been facing a number of non-tariff and para-tariff barriers when it comes to exports.
"Indian customs have asked for laboratory tests for each consignment of food products, cosmetics, and leather and textile products exported by Bangladesh. The samples of Bangladeshi products are sent to the laboratories located at areas far from land customs office, which delays clearance of consignments."
He said: "India has imposed 18 per cent value added tax on apparels and cement of Bangladesh origin, defying South Asian Free Trade Area Agreement.
"These negative factors are discouraging exports from Bangladesh. We should work in a coordinating manner to remove these barriers," he said.
Bangladesh imported products worth US$3.4 billion from India in 2007-08, against exports worth $358 million.
Chittaranjan Bhattacharjee, head of Indian delegation and M S Shekil Chowdhury, senior vice president of DCCI, also spoke on the occasion.
Indian High Commissioner Pinak Ranjan Chakravarty said Tuesday that the certificates issued by Bangladesh Standards and Testing Institution (BSTI) should be of such high standard that Bangladeshi exportable products would not require further verifications tests.
His comments came in the wake of local businessmen's claims that tests of Bangladeshi exportable products conducted in foreign soil have been delaying the clearance of their consignments.
The Indian high commissioner was speaking at the exhibition-cum-buyer-seller meet jointly organised by Dhaka Chamber of Commerce and Industry (DCCI) and Chemical and Allied Products Export Promotion Council (CAPEXIL), India in Dhaka.
A 20-member Indian business delegation was Tuesday in the city to showcase their products and engage in talks with prospective Bangladesh buyers.
Pinak said the existing industry-to-industry contact between Bangladesh and India signals future stronger economic ties.
"India attaches utmost importance to Bangladesh. We are confident that bilateral relations with the country will deepen in the coming years."
The diplomat also recognised the existing trade imbalance between two countries, which is now around $3 billion.
"But there is no need to be upset as Bangladesh has such trade imbalance with many other countries."
He said the trade gap between the two economies is shrinking day by day. "The export from Bangladesh to India was $60 million which is now around $300 million. It indicates that the gap is reducing."
"It will take time. The efforts to reduce trade gap between two countries must be driven by investment."
The two countries have signed a bilateral agreement in February 2009, which will augment India's investment in Bangladesh, he said.
Pinak said Indian investors have opportunities to invest in Bangladesh. "They can set up plants here. Afterwards, they will be able to sell their products in the eastern region of India."
"They should put emphasis on joint ventures as mere selling of goods will only widen the trade gap."
Pinak suggested the certification system of BSTI should be of global standard so that Bangladeshi exportable products do not require to be tested further.
On laboratory test of Bangladeshi exportable products, he said: "It takes time as some laboratories are not located near the borders."
Dipankar Talukder, state minister for CHT Affairs, said Indian investors can invest in the country's power and energy sectors as the present government plans to add 5,000 and 7,000 megawatt of electricity to its existing capacity by 2011 and 2013 respectively.
"They also can invest in light engineering, pharmaceuticals textiles, jute and jute goods sectors," he said.
Zafar Osman, president of DCCI, said the trade gap between Bangladesh and India should be reduced to strengthen the bilateral economic ties as the trade is heavily weighted in favour of New Delhi.
He said Bangladesh has been facing a number of non-tariff and para-tariff barriers when it comes to exports.
"Indian customs have asked for laboratory tests for each consignment of food products, cosmetics, and leather and textile products exported by Bangladesh. The samples of Bangladeshi products are sent to the laboratories located at areas far from land customs office, which delays clearance of consignments."
He said: "India has imposed 18 per cent value added tax on apparels and cement of Bangladesh origin, defying South Asian Free Trade Area Agreement.
"These negative factors are discouraging exports from Bangladesh. We should work in a coordinating manner to remove these barriers," he said.
Bangladesh imported products worth US$3.4 billion from India in 2007-08, against exports worth $358 million.
Chittaranjan Bhattacharjee, head of Indian delegation and M S Shekil Chowdhury, senior vice president of DCCI, also spoke on the occasion.