Dhaka, Kathmandu finalise deal on enhancing commercial links

Dhaka: Bangladesh has finalised the principles of a transit deal with Nepal as part of its plans to enhance commercial connectivity with landlocked Nepal and Bhutan alongside neighbouring India.

Bangladesh officials yesterday said the draft of the deal was finalised at a two-day meeting between Bangladesh and Nepalese commerce secretaries.

The agreement is expected to be signed early next year following the approval of the higher authorities of both countries.

"The draft suggested transportation of goods between the two countries" through Indian territory, a commerce ministry spokesman told PTI adding that the deal would also enable Nepal to use Bangladesh's southwestern Mongla and southeastern Chittagong ports.

Finer points

The state-run BSS news agency, meanwhile, quoting Bangladesh's commerce secretary Gulam Hussain said the two sides finalised the operating guidelines for the transit.

Initially, only transports from Nepal could come to Bangladesh through India because Bangladesh does not have an agreement with New Delhi to use its roads for such purposes.

Hussain, however, expects this to change once Bangladesh and India reach an agreement.

Nepalese commerce secretary Purushottam Ojha said they prefer the southwestern Mongla Port although it can use the Chittagong Port as well after the agreement.

"Chittagong is too far when Mongla is convenient to use as an alternative port to Kolkata, which landlocked Nepal has been using as the nearest port facility," he said.

The two countries originally signed the transit deal on April 2, 1976, but the agreement remained on paper only as it did not incorporate operating modalities while it also required Indian approval as Bangladesh and Nepal would need to use a passage through Indian territory for the transport movement.

Transit treaty

Bangladesh sought to reactivate the 1976 transit treaty allowing Nepal to use its southwestern Mongla port for exports of goods to a third country.

Following her maiden India trip in January this year Bangladesh Prime Minister Shaikh Hasina said getting India to allow the use of its territory for Bangladesh to trade with Nepal and Bhutan was a "major success" of her New Delhi tour.

Dhaka has agreed to offer the facilities at Bangladesh's two seaports to India alongside Nepal and Bhutan.

Dhaka also agreed to sign a deal on India's access to the Ashuganj Port overland transport of goods to its isolated northeastern region.

Officials said besides the transit guidelines, the secretariat-level meeting formed a committee to review the list of items for duty reduction.

Bangladesh has sought duty-free access of 184 products to Nepal and Kathmandu wants similar access for 148 products.

The committee will finalise its recommendation by December.