Dhaka to propose Delhi to reduce sensitive list under SAFTA
Friday, 31 August 2007
M Azizur Rahman
Bangladesh will place a formal proposal to India for shortening the sensitive list of products to ensure exports of more Bangladeshi goods into its market.
"Cosmetics and toiletries, leather and leather goods, ceramics and readymade garments (RMG) are among the main Bangladeshi items the government will request India for dropping from its existing sensitive list," a senior Commerce Ministry official told the FE Tuesday.
He said in line with the assurance of Indian Prime Minister Manmohan Singh during the recently held 14th South Asian Association for Regional Cooperation (SAARC) Summit, the commerce ministry has already finalised a two-tier proposal for freeing from the sensitive list a number of Bangladeshi products that have potential markets in India.
"We will request India formally to drop 450 products from its sensitive list on a non-reciprocal basis as assured by the Indian Prime Minister," the commerce ministry official said.
The commerce ministry has also finalised another list of 101 products for de-listing as part of an alternative approach in case the neighbour turns down the first one.
Currently, India has a sensitive list of 744 products for the least developed countries (LDC), including Bangladesh.
During the 14th SAARC summit held in Delhi the Indian Prime Minister assured the LDCs of duty-free access of their products.
The Indian leader had also assured them of downsizing the sensitive list in favour of the LDCs, said commerce ministry sources.
"We will send both the lists to the foreign ministry next week," a commerce ministry official said.
The foreign ministry will then take up the issue for negotiation bilaterally, he said.
Sources said if India shortens the product lists as prepared by Bangladesh the export of Bangladeshi products in the Indian market will grow significantly and help reduce the existing yawning trade gap between the two countries.
According to official statistics, the total bilateral trade volume during the fiscal year 2005-06 stood at US$1.99 billion, of which Bangladesh's exports to India amounted to only $ 241 million.
Besides, removing trade barrier on the products of LDCs by the developed or developing nations, including India, is one of the major steps agreed by the member countries.
As per the SAFTA provision the developed or developing countries must have to reduce tariff rates to the level of 0-5 per cent for the LDCs by 2009.
The LDCs will, however, have to reduce the tariff rates by 2016 next for the products of the developing or developed countries of the SAFTA.
Bangladesh will place a formal proposal to India for shortening the sensitive list of products to ensure exports of more Bangladeshi goods into its market.
"Cosmetics and toiletries, leather and leather goods, ceramics and readymade garments (RMG) are among the main Bangladeshi items the government will request India for dropping from its existing sensitive list," a senior Commerce Ministry official told the FE Tuesday.
He said in line with the assurance of Indian Prime Minister Manmohan Singh during the recently held 14th South Asian Association for Regional Cooperation (SAARC) Summit, the commerce ministry has already finalised a two-tier proposal for freeing from the sensitive list a number of Bangladeshi products that have potential markets in India.
"We will request India formally to drop 450 products from its sensitive list on a non-reciprocal basis as assured by the Indian Prime Minister," the commerce ministry official said.
The commerce ministry has also finalised another list of 101 products for de-listing as part of an alternative approach in case the neighbour turns down the first one.
Currently, India has a sensitive list of 744 products for the least developed countries (LDC), including Bangladesh.
During the 14th SAARC summit held in Delhi the Indian Prime Minister assured the LDCs of duty-free access of their products.
The Indian leader had also assured them of downsizing the sensitive list in favour of the LDCs, said commerce ministry sources.
"We will send both the lists to the foreign ministry next week," a commerce ministry official said.
The foreign ministry will then take up the issue for negotiation bilaterally, he said.
Sources said if India shortens the product lists as prepared by Bangladesh the export of Bangladeshi products in the Indian market will grow significantly and help reduce the existing yawning trade gap between the two countries.
According to official statistics, the total bilateral trade volume during the fiscal year 2005-06 stood at US$1.99 billion, of which Bangladesh's exports to India amounted to only $ 241 million.
Besides, removing trade barrier on the products of LDCs by the developed or developing nations, including India, is one of the major steps agreed by the member countries.
As per the SAFTA provision the developed or developing countries must have to reduce tariff rates to the level of 0-5 per cent for the LDCs by 2009.
The LDCs will, however, have to reduce the tariff rates by 2016 next for the products of the developing or developed countries of the SAFTA.