Bangladesh and India have engaged in discussions regarding the initiation of talks for a free trade agreement aimed at bolstering their economic ties. This noteworthy development emerged during an official-level meeting of the Joint Working Group on Trade (JWG) between the two nations, which took place in Dhaka last week.
The discussions, as outlined by the Indian Commerce Ministry, encompassed a wide array of bilateral issues. These included addressing port restrictions, laying the groundwork for the commencement of a Comprehensive Economic Partnership Agreement (CEPA), aligning standards, mutual recognition of standards, and ensuring the supply of essential commodities to Bangladesh.
These annual meetings serve as a crucial platform for both countries to delve into key trade-related concerns and explore opportunities for collaboration, trade expansion, technical cooperation, and diversification of their economic engagement.
CEPA, a variant of a free trade agreement, involves a substantial reduction or elimination of customs duties on a substantial portion of traded goods between the participating nations. Additionally, CEPA facilitates the easing of regulations to encourage trade in services and investments.
In the course of the meeting, discussions also revolved around matters pertaining to the enhancement of road and rail infrastructure, regional connectivity via multi-modal transportation, and the development or fortification of infrastructure at Land Customs Stations and Integrated Check Posts, as well as the establishment of border haats.
Notably, bilateral trade between the two nations has seen fluctuations, with it registering at $14.2 billion in the fiscal year 2022-23, compared to $8.13 billion in the preceding fiscal year 2021-22.
