Trade with Bhutan must accelerate

NEWS reports on Thursday said a commerce secretary level meeting between Bangladesh and Bhutan is going to take place early next month in Thimpu in an environment of growing regional connectivity alongwith a need for more bilateral trade from both sides. We hold the view that the meeting will be able to contribute significantly to accelerate trade and investment from both ways. In fact, Bhutan is a close neighbour separated by the Indian state of Assam and Meghalaya by a small strip of 25 km of land at some places from Rangpur and Jamalpur districts in Bangladesh. So it is quite natural that the Indian involvement is most essential to facilitate the expansion of land based trade with Bhutan which was the first country to recognize Bangladesh during the liberation war along with India. In fact, both countries had signed a temporary transit deal in 1980 to continue until 2000, but due to the Indian government’s unwillingness to give the corridor access, it did not fully materialize. Meanwhile Bhutan has made renewed requests to Bangladesh to revive the deal on several occasions in view of the growing pressure of external trade to use Chittagong and Mongla ports. As a land locked country, it uses Kolkata port now which is at a greater distance compared to sea ports in Bangladesh and the forthcoming Thimpu meeting may prove quite significant to find out new plans of action in this regard. We believe easy connectivity will contribute to the creation of new trade, in addition to increasing the volume of existing trade. Bhutan currently has a surplus trade balance with Bangladesh while both countries are enjoying “most favoured nation” status with duty-free market access to many of their products. Despite the fact, Dhaka’s export is quite insignificant, which stood at $3 million in 2009-10 compared to $25 million from the Bhutanese side. Bangladesh mainly imports fruits and timber while electricity import is high on the agenda. On the other hand, Bhutanese traders mainly pick up garments from Bangladesh and given the smooth inland connectivity the volume may rapidly multiply. News reports said Thimpu is also interested to recruit Bangladeshi physicians, skilled engineers, IT specialists as well as construction workers. They are also reportedly interested to expand cooperation in education and cultural exchanges. As we know that the two countries are now negotiating the opening of two new land ports at Tamabil in Sylhet and Haluaghat in Mymensingh districts to reduce loads on Burimari land port to receive transshipment from Phunt-soling land port in Bhutan through Chengraband in India. However much of the success of these initiatives would depend on the Indian government’s willingness to allow the use of its territory. We know, Bangladesh is now offering wide ranging regional connectivity to India by roads, rivers and railways. There are valid reasons that India would agree to grant reciprocal facility to expanding connectivity between Bhutan and Bangladesh. It requires political decisions and we hold the view that Delhi should make it easier now in the changing regional environment.