Bangladesh approves Revised Trade-deal with India

In an aim to accelerate the bilateral relation with India, Bangladesh cabinet on Monday approved the revised India-Bangladesh trade agreement under which the two neighbouring countries would allow each others’ territories for trade with any third country. The deal would be in force for 5 years.

The revised trade-deal will enable Bangladesh to use Indian territories for transporting goods to Nepal and Bhutan, while India would be able to export goods to Myanmar through Bangladesh. Besides, India could transport goods to its seven northeastern states. Nepal and Bhutan have also similar agreements with India.

The two countries had entered the deal on March 28, 1972. Under the previous agreement, which expired on March 31, trade could only be done between the two neighbouring countries. Under the previous agreement, goods-laden vehicles entering India or Bangladesh were parked at the borders requiring further inland transport.

Under the revised deal, both the countries can use each other’s rail, road and waterway networks for transporting the goods for a fee, which will be fixed in future course of time. The revised deal would be signed either during Prime Minister Narendra Modi’s visit to Dhaka or during Prime Minister Sheikh Hasina’s visit to New Delhi.