India gains most from PM's India visit
Thursday, 21 January 2010
Syed Jamaluddin
Prime Minister Sheikh Hasina's first state visit to India on January 10 last since assuming office a year ago raised high hopes on opening up a new chapter in Bangladesh-India relations. Bangladesh eagerly looked forward to it and the Indian side commented that this visit would be a land mark event. New Delhi was expected to take some non-reciprocal steps in recognition of Bangladesh contribution in handing over Ulfa leaders to Indian authorities. Professionals in Dhaka expressed the hope that this would end existing mistrust in resolving the problems in trade, maritime boundary, border management, connectivity and water sharing.
A new window of relationship was expected to be opened. Indian experts pointed out before Prime Minister's arrival in New Delhi that Hasina govt had proceeded in the right manner in putting the ties with India on a stronger path by addressing India's security concerns. Therefore, India should open its market more generously to products from Bangladesh. They also called for connectivity to Northeast India in return for Bangladesh transit facility to Nepal and Bhutan.
The Prime Minister of Bangladesh and the Indian Prime Minister had a two hour meeting in Delhi on the 11th of this month and signed three agreements to fight terrorism, organised crime and mutual transfer of convicted prisoners. They also signed two memorandums of understanding on cooperation in power and cultural exchange. India announced a $1.0 billion line of credit for infrastructure development in Bangladesh, to be used specially to construct a rail link between Akhaura and Agartala to reduce the distance between Kolkata and Agartala by about 550 km. In response to Bangladesh's concern over Tipaimukh dam, India again assured out PM that New Delhi would not take any step that may hurt Bangladesh. Indian side agreed to remove 47 items from its negative list to give Bangladesh products duty-free access to its market. India also announced it would give transit facility to Nepal and Bhutan and export 250 megawatt of electricity from its central grid. It was agreed that Bangladesh will allow use of Mongla and Chittagong sea ports for movement of goods to and from India through road and rail. Bangladesh agreed to give Nepal and Bhutan access to Mongla and Chittagong ports.
The Indian Finance Minister hinted that India might lift tariff and non-tariff barriers from many Bangladeshi goods for their entry to Indian market. It was agreed that border haats shall be established under a pilot programme at selected areas. Govt of India would offer Bangladesh 300 scholarships annually for a period of five years for study and training in universities and training institutions in India. Bangladesh supported in principle India's candidature for a non-permanent seat in the United Nations Security Council.
The two countries agreed on the need to amicably demarcate the maritime boundary through a Joint Boundary Working Group. Indira Gandhi Prize for Peace, Disarmament and Development for 2009 was conferred on Prime Minister Sheikh Hasina, perhaps in recognition of her cooperation with India specially on security matters.
The only substantive offer made by India is a tied credit of $1 billion to be spent on infrastructure projects for facilitating movement of goods to Mongla and Chittagong ports through rail and road. Goods and equipment under this credit will have to be procured from India. Therefore, it would have been appropriate for India to offer this assistance as grant.
The offer of 50 megawatt of electricity is very little compared to the requirement of Bangladesh. Moreover, we are not sure when this will be available. India is primarily interested in connectivity of electricity keeping in view the availability/surplus of power in north eastern states. India did not make any specific commitment on three areas of great concern to Bangladesh. They are water sharing, trade gap and maritime boundary. We are also not aware of the items taken out of the negative list. If these items are of marginal significance, it will not mean much.
The three security related agreements on terrorism, organised crime and drug trafficking would give the Indians the handle over its insurgents who either hide in Bangladesh or are inclined to cross over to Bangladesh in search of sanctuary. These agreements ensure that whatever India wanted on the issue of security has been delivered. Bangladesh will do the dirty job of capturing the culprits for handing over to India as they have done in the case of Ulfa leaders.
The biggest achievement of India is the agreement on use of Chittagong and Mongla ports. Indian goods can now move to and from these ports. Such movement of goods may prove beyond the capacity of the Chittagong port making it difficult for movement of Bangladeshi goods. Bangladesh did not link up these concessions with water sharing and other outstanding issues.
The agreement on opening of border haats may only fuel smuggling as the India-Bangladesh border is now not properly guarded. A border trade agreement between the two countries, signed after the liberation, was later scrapped.
Our negotiators failed to extract real gains from India while giving it concessions from Bangladesh. Most burning issues of Bangladesh were sidelined.
(The writer is an economist and columnist. syedjamaluddin22@yahoo.com)
Prime Minister Sheikh Hasina's first state visit to India on January 10 last since assuming office a year ago raised high hopes on opening up a new chapter in Bangladesh-India relations. Bangladesh eagerly looked forward to it and the Indian side commented that this visit would be a land mark event. New Delhi was expected to take some non-reciprocal steps in recognition of Bangladesh contribution in handing over Ulfa leaders to Indian authorities. Professionals in Dhaka expressed the hope that this would end existing mistrust in resolving the problems in trade, maritime boundary, border management, connectivity and water sharing.
A new window of relationship was expected to be opened. Indian experts pointed out before Prime Minister's arrival in New Delhi that Hasina govt had proceeded in the right manner in putting the ties with India on a stronger path by addressing India's security concerns. Therefore, India should open its market more generously to products from Bangladesh. They also called for connectivity to Northeast India in return for Bangladesh transit facility to Nepal and Bhutan.
The Prime Minister of Bangladesh and the Indian Prime Minister had a two hour meeting in Delhi on the 11th of this month and signed three agreements to fight terrorism, organised crime and mutual transfer of convicted prisoners. They also signed two memorandums of understanding on cooperation in power and cultural exchange. India announced a $1.0 billion line of credit for infrastructure development in Bangladesh, to be used specially to construct a rail link between Akhaura and Agartala to reduce the distance between Kolkata and Agartala by about 550 km. In response to Bangladesh's concern over Tipaimukh dam, India again assured out PM that New Delhi would not take any step that may hurt Bangladesh. Indian side agreed to remove 47 items from its negative list to give Bangladesh products duty-free access to its market. India also announced it would give transit facility to Nepal and Bhutan and export 250 megawatt of electricity from its central grid. It was agreed that Bangladesh will allow use of Mongla and Chittagong sea ports for movement of goods to and from India through road and rail. Bangladesh agreed to give Nepal and Bhutan access to Mongla and Chittagong ports.
The Indian Finance Minister hinted that India might lift tariff and non-tariff barriers from many Bangladeshi goods for their entry to Indian market. It was agreed that border haats shall be established under a pilot programme at selected areas. Govt of India would offer Bangladesh 300 scholarships annually for a period of five years for study and training in universities and training institutions in India. Bangladesh supported in principle India's candidature for a non-permanent seat in the United Nations Security Council.
The two countries agreed on the need to amicably demarcate the maritime boundary through a Joint Boundary Working Group. Indira Gandhi Prize for Peace, Disarmament and Development for 2009 was conferred on Prime Minister Sheikh Hasina, perhaps in recognition of her cooperation with India specially on security matters.
The only substantive offer made by India is a tied credit of $1 billion to be spent on infrastructure projects for facilitating movement of goods to Mongla and Chittagong ports through rail and road. Goods and equipment under this credit will have to be procured from India. Therefore, it would have been appropriate for India to offer this assistance as grant.
The offer of 50 megawatt of electricity is very little compared to the requirement of Bangladesh. Moreover, we are not sure when this will be available. India is primarily interested in connectivity of electricity keeping in view the availability/surplus of power in north eastern states. India did not make any specific commitment on three areas of great concern to Bangladesh. They are water sharing, trade gap and maritime boundary. We are also not aware of the items taken out of the negative list. If these items are of marginal significance, it will not mean much.
The three security related agreements on terrorism, organised crime and drug trafficking would give the Indians the handle over its insurgents who either hide in Bangladesh or are inclined to cross over to Bangladesh in search of sanctuary. These agreements ensure that whatever India wanted on the issue of security has been delivered. Bangladesh will do the dirty job of capturing the culprits for handing over to India as they have done in the case of Ulfa leaders.
The biggest achievement of India is the agreement on use of Chittagong and Mongla ports. Indian goods can now move to and from these ports. Such movement of goods may prove beyond the capacity of the Chittagong port making it difficult for movement of Bangladeshi goods. Bangladesh did not link up these concessions with water sharing and other outstanding issues.
The agreement on opening of border haats may only fuel smuggling as the India-Bangladesh border is now not properly guarded. A border trade agreement between the two countries, signed after the liberation, was later scrapped.
Our negotiators failed to extract real gains from India while giving it concessions from Bangladesh. Most burning issues of Bangladesh were sidelined.
(The writer is an economist and columnist. syedjamaluddin22@yahoo.com)