Dhaka will request Thimphu to export power to Bangladesh during the upcoming commerce secretary level meeting next week in Bhutan, a high trade official said.
The commerce secretary level meeting of Bangladesh and Bhutan will be held on April 9-10 next in Thimphu. An inter-ministerial meeting was held recently that finalised the issues to be discussed during the upcoming meeting.
"We will discuss bilateral issues such as import of electricity from Bhutan, transit and cooperation in tourism sector," senior secretary of the ministry of commerce (MoC) Mahbub Ahmed who will lead the Bangladeshi delegation told the FE on Monday last.
The daily demand of electricity in Bangladesh is over 8,000 megawatts (MW). The country is generating between 6500 MW and 7000 MW power that includes import of around 460 MW from India, according to Bangladesh Power Development Board.
Bhutan is interested to use seaports and airports in Bangladesh along with five additional land customs (LC) stations under the proposed protocol on transit.
The secretary-level meeting takes place annually between the two countries. The latest meeting was held in March last year in Dhaka.
The meeting discussed river and road transit matters between the two countries.
Bangladesh allows duty free market access of 18 Bhutanese products such as orange, ginger, cardamom, gypsum, fruits juice (tin and bottled) and limestone.
Bhutan has proposed Bangladesh to allow duty free market access of 17 items that include Tetra pack fruit juice, TMP iron bar, cement, clinker, quartz and mineral water.
Bhutan allows duty free market access of 90 Bangladeshi products that include plastic, garments, leather and leather goods.
The commerce secretary level meeting on March 20 last year was led by senior secretary Mahbub Ahmed.
The meeting also decided to form joint technical committees for feasibility studies on customs and transit routes.
The meeting also decided that Bhutan will be allowed to use Nakugaon and Haluaghat land ports along with the existing Burimari and Tamabil land ports. Bhutan is interested to use Mongla and Chittagong seaports and airports in Bangladesh.
The two countries have also agreed to form sub-group with the officials of both countries' central banks having the tasks to deal with banking and financial matters for resolving problems on smooth import and export activities.
It also discussed duty free/preferential market access and trade facilitation issues, institutional mechanism to streamline financial transaction/ trade payment for smooth flow of trade and duty free export of some products from both sides.
Bangladesh and Bhutan had signed a temporary transit deal in 1980, which expired in 2000. Bhutan has requested Bangladesh to renew the deal.
The senior secretary of the MoC said apart from the transit deal, the high-ups of the two countries will also discuss other issues that will help ensure mutual benefits of both the countries.
Earlier on February 11, 2013 an inter-ministerial meeting had approved the draft recommendation on allowing transit to Bhutan to boost regional trade in South Asia (SA).
The bilateral trade agreement between the two countries was renewed in November 2009 which was first signed in 1988.
The volume of trade between Bhutan and Bangladesh during the fiscal year (FY) 2012- 2013 was worth US$ 30 million. Bhutan exported goods worth $25 million while Bangladesh exported around $5 million worth of goods to Bhutan during the year.
Bhutan exported goods worth $19 million, while Bangladesh exported only $3.12 million worth of goods to Bhutan during the FY 2011-12.
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