CEPA, anti-dumping duty, commodity quota top agenda

Opening talks on Comprehensive Economic Partnership Agreement (CEPA), lifting anti-dumping duties on jute exports and India's allocation of annual quota for the export of essentials to Bangladesh are to dominate bilateral talks shortly, officials said.
The imposition of export duties, abrupt export restrictions, and the setting of minimum export value for products without prior notice will also figure high at the talks as the foreign secretaries of Bangladesh and India will meet in New Delhi on November 24 for the consultation on various pending issues.
The Ministry of Foreign Affairs has sought inputs from the relevant ministries, divisions and agencies so "all bilateral issues, including outstanding ones", can be discussed in detail during the foreign-office consultation.
Besides, opening a new border market at Sajek in Rangamati hill district of Bangladesh and Silsury village in the Indian state of Mizoram on the other side, allowing one land port in each border state without port restrictions or a minimal negative list of restrictions, starting with ICP Agartala-Akhaura, and opening a new LC Station at Umkiang-Mikir Para village in Assam will be discussed.
A senior official at the Ministry of Commerce told the FE that "many issues remained unresolved with neighbouring India, particularly on the trade front".
He said Bangladesh and India had jointly studied the feasibility of signing a free-trade agreement under an arrangement styled 'Comprehensive Economic Partnership Agreement (CEPA)'.
Upon completing the process of assessing the pros and cons of signing the CEPA, the prime ministers of Bangladesh and India last year instructed trade officials of both countries to begin negotiations within 2022.
Bangladesh and India have recently exchanged some documents and plans for the CEPA, but formal negotiations have yet to get started. During the foreign-office consultation, the two sides will discuss how and when to start the CEPA negotiations.
Another trade official said, "As India is one of Bangladesh's main import sources of essential commodities, any supply disruption from the neighbouring country leads to a significant price hike for the items."
He mentioned that India this August agreed to ensure uninterrupted supply of a fixed volume of seven essential food items: rice, wheat, sugar, onions, garlic, lentils, and ginger, to ensure food security and keep prices stable.
The forthcoming foreign secretary-level consultation may discuss signing a formal agreement in this regard, he said.
The official said in the past, India had been found suddenly impose export duties, issue export restrictions, and in the case of some essential items like onions, set a minimum export value without giving prior notice to major importers like Bangladesh.
Dhaka wants Delhi to give advance notice of export restrictions, duty imposition and minimum export-value determination so that Bangladesh can make arrangements to import essentials from other sources.
A long-pending issue, withdrawal of anti-dumping duty on the export of Bangladeshi jute and jute goods, will also be raised at the consultation.
India imposed anti-dumping duties on Bangladesh's jute and jute goods exports ranging from $19 to $352 per tonne in 2017 for a period of five years. The measure was renewed again in 2022.
Officials said India is now advancing to slap countervailing duties -- also known as anti-subsidy duties -- on the export of Bangladeshi jute and jute goods to its market.
Economists are critical of tariff and para-tariff barriers that further limit Bangladesh's exports to the vast neighbouring market although the country has a huge bilateral trade deficit.

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