Dhaka, Delhi to sign 'Border Haat' deal on October 21
Monday, 4 October 2010
Nazmul Ahsan
'Border Haat' agreement between Bangladesh and India is going to be signed on October 21 next in Delhi, a top policymaker of the government said.
Dhaka has finally agreed to sign the proposed agreement after New Delhi had assured of non imposition of any local tax on Bangladeshi products to be traded in the proposed Haat. The Haat will operate in two frontier locations on a pilot basis, which might be extended on its successful operation, sources said.
Commerce Minister Faruk Khan will lead a 16-member delegation to Indian capital on October 20.
Top officials from different ministries and leading chamber leaders are expected to be included in the delegation.
"Both the countries are going to ink the 'Border Haat' agreement as dispute over local tax issue has been resolved," Mashiur Rahman, Economic Affairs Adviser to the Prime Minister Sheikh Hasina told the FE on Sunday.
"Bangladesh will be benefited out of the proposed Haat as the demand for Bangladeshi products are high in the frontier areas of India where the haats will be established," Mashiur added.
Officials in the MoC said two Letters of Exchanges are also likely to be signed on the same date between the MoC, Bangladesh and the State government of Meghalaya , India to ensure the smooth operation of the Haat.
The Indian part of the two "Border Haats' will be in the state Meghalay while the Bangladesh part would be on Sunamgong and Kurigram districts.
India has long been showing its interest to sign the proposed agreement with Bangladesh. Commerce ministry officials of the two nations hammered out the draft deal in mid May last in Dhaka, agreeing to impose caps on trading and making the bazaars accessible only for the people who live in and around the area.
Later, Mashiur raised the issue of local tax and asked New Delhi to ensure that no local tax of Indian State Government will be imposed on border haat trading.
"After a long diplomatic consultation, Indian government has agreed not to impose any local state government tax on products Bangladsh to be traded in the haats, which inspired the government to proceed on towards inking the trade deal," a MoC high official said.
"The Letters of Exchange to be signed will ensure non-imposition of local tax," he added.
Bangladesh stands to be benefited as the draft agreement is free from both central and state taxes, a top official in the PMO said.
According to the final draft agreement, an individual will not be able to trade above $50 at the Border Haats and the trading should be conducted in currencies of the two nations.
Furthermore, the negotiated draft agreement said a committee comprising government officials and officers of border security forces of the two nations will manage the markets and will sit periodically to review its operation.
The committee will be headed by local administration. The trading will be held once a week.
Farm and home made items produced with in 10 kilometer radius of Border Haats will be allowed to be traded. The Haats will be set up within five kilometers of the frontier, the draft said.
Two bazaars will be set up in the first phase - one in Sunamganj and another in Kurigram along India's Meghalaya frontier - in a bid to boost trade and commerce for local border people. The trading will be held once a week.
Dhaka and New Delhi agreed to set up border markets early this year when Prime Minister Sheikh Hasina made her first visit to India.
In 1972, a total of 181 land customs stations were established along the border to facilitate cross-border trading. Operations of around 130 stations were suspended a year later after allegations that they spurred smuggling.
'Border Haat' agreement between Bangladesh and India is going to be signed on October 21 next in Delhi, a top policymaker of the government said.
Dhaka has finally agreed to sign the proposed agreement after New Delhi had assured of non imposition of any local tax on Bangladeshi products to be traded in the proposed Haat. The Haat will operate in two frontier locations on a pilot basis, which might be extended on its successful operation, sources said.
Commerce Minister Faruk Khan will lead a 16-member delegation to Indian capital on October 20.
Top officials from different ministries and leading chamber leaders are expected to be included in the delegation.
"Both the countries are going to ink the 'Border Haat' agreement as dispute over local tax issue has been resolved," Mashiur Rahman, Economic Affairs Adviser to the Prime Minister Sheikh Hasina told the FE on Sunday.
"Bangladesh will be benefited out of the proposed Haat as the demand for Bangladeshi products are high in the frontier areas of India where the haats will be established," Mashiur added.
Officials in the MoC said two Letters of Exchanges are also likely to be signed on the same date between the MoC, Bangladesh and the State government of Meghalaya , India to ensure the smooth operation of the Haat.
The Indian part of the two "Border Haats' will be in the state Meghalay while the Bangladesh part would be on Sunamgong and Kurigram districts.
India has long been showing its interest to sign the proposed agreement with Bangladesh. Commerce ministry officials of the two nations hammered out the draft deal in mid May last in Dhaka, agreeing to impose caps on trading and making the bazaars accessible only for the people who live in and around the area.
Later, Mashiur raised the issue of local tax and asked New Delhi to ensure that no local tax of Indian State Government will be imposed on border haat trading.
"After a long diplomatic consultation, Indian government has agreed not to impose any local state government tax on products Bangladsh to be traded in the haats, which inspired the government to proceed on towards inking the trade deal," a MoC high official said.
"The Letters of Exchange to be signed will ensure non-imposition of local tax," he added.
Bangladesh stands to be benefited as the draft agreement is free from both central and state taxes, a top official in the PMO said.
According to the final draft agreement, an individual will not be able to trade above $50 at the Border Haats and the trading should be conducted in currencies of the two nations.
Furthermore, the negotiated draft agreement said a committee comprising government officials and officers of border security forces of the two nations will manage the markets and will sit periodically to review its operation.
The committee will be headed by local administration. The trading will be held once a week.
Farm and home made items produced with in 10 kilometer radius of Border Haats will be allowed to be traded. The Haats will be set up within five kilometers of the frontier, the draft said.
Two bazaars will be set up in the first phase - one in Sunamganj and another in Kurigram along India's Meghalaya frontier - in a bid to boost trade and commerce for local border people. The trading will be held once a week.
Dhaka and New Delhi agreed to set up border markets early this year when Prime Minister Sheikh Hasina made her first visit to India.
In 1972, a total of 181 land customs stations were established along the border to facilitate cross-border trading. Operations of around 130 stations were suspended a year later after allegations that they spurred smuggling.