The feasibility and potential of Coastal Shipping between India and Bangladesh was discussed In the Shipping Secretary-level talks held on 2nd – 3rd July, 2012 in Dhaka, Bangladesh. Subsequently, it was also discussed in the Directors General (Shipping) level talks held on 26th September, 2012 at Visakhapatnam, India and on 14-15 January, 2013 at Cox’s Bazar, Bangladesh. The issue was again discussed in the recent Shipping Secretary-level talks held on 27th February, 2013 in New Delhi, India.

India has requested for extending the benefit of certification of GSP on the fabrics and other inputs imported from India towards GSP benefits from European Union (EU) under the South Asian Association for Regional Cooperation (SAARC) cumulation. Bangladesh Government has not accepted Indian request.

India has reduced its Sensitive List for the Least Developed Countries (including Bangladesh) under the South Asian Free Trade Area Agreement (SAFTA) from 480 tariff lines to just 25 tariff lines. Zero basic customs duty access has been given to all items removed from the sensitive list. Commensurately, Bangladesh has also reduced its SAFTA sensitive list for non-LDCs (including India) from 1241 tariff lines to 993 tariff lines (20% reduction). Both Governments have taken necessary steps to improve physical infrastructure for greater bilateral trade facilitation. In addition to the above, two Border Haats in Meghalaya on India- Bangladesh border at Baliamari (Bangladesh) - Kalaichar (India) and at Lauwaghar (Bangladesh)- Balat (India) are operational allowing traditional system of marketing in local currency and /or Barter basis. To further enhance bilateral trade, an “India Show” was also organized jointly by the Government of India and the Federation of Indian Chambers of Commerce & Industry (FICCI) at Dhaka, Bangladesh from 3-5 December, 2012.

This information was given by the Minister of State of Commerce & Industry, Dr. D. Purandeswari in a written reply in the Lok Sabha today.

DS/RK

(Release ID :92975)

SAFTA sensitive list reduction expands tariff-free market access between India and Bangladesh, paired with trade facilitation measures. Reduction of tariff restrictions and trade facilitation measures are central to India-Bangladesh cooperation: multiple shipping and trade talks assessed coastal shipping feasibility and infrastructure coordination; India's request for GSP cumulation on inputs exported via Bangladesh was denied; India and Bangladesh each reduced their SAFTA sensitive lists and removed duties on items taken off those lists; complementary measures include border haats enabling local currency and barter trade and joint trade promotion events.