Near, Yet So Far
A SLEW of deals was reached between Nepal and Bangladesh during the first-ever commerce
secretary level talks between the two countries that concluded on Tuesday. That it was the
first-ever talks at that level perhaps bespeak of the scheme of things in Nepal-Bangladesh
trade and economic relations. Despite being a member of the SAARC and enjoying cordial
relations always, Nepal and Bangladesh economic ties have been far from vibrant. Facts
speak for themselves. The trade volume stands at only around Rs. 800 million. In Nepal's
total exports volume, only one per cent goes to Bangladesh while its imports from that
country is a mere 0.2 per cent of the total imports. A 25-year old trade agreement, which
should have been revised a long time ago, still guides the trade between the two
countries. Against this backdrop, the series of agreements between the two countries that
were struck during the just-concluded talks has much significance. Bangladesh has agreed
to provide warehouse facilities for Nepalese cargo at Mangla port, besides providing a 50
per cent rebate for goods on transit. It has also agreed to extend the "free
time" to clear the cargo from the port. Bangladesh has also agreed to develop
necessary infrastructure to develop a land port at Bangladandh by this December and is
considering Nepal's demand that it open up its market for Nepalese agriculture products.
Hopefully, these agreements mark the beginning of a speedier
Nepal-Bangladesh trade growth which has been bogged down in various hitches, the chief of
them being the lack of physical facilities at the Bangladeshi border point of Bangladandh.
The Kararbhitta,-Phulbari-Bangladandh route opened with a lot of fanfare several years
ago, at present sees very few trucks carrying goods to and from Bangladesh. The trade is
basically now confined to Nepal exporting lentils and wheat products and importing jute
products, machinery and fertilisers. This must change, and the agreements reached now
should come in handy. The agreement to bring down the customs tariff on a number of
exportable items is a positive move that would, once the items are finalised, see an
increased volume of trade. When trade begins to pick up between the two countries prompted
by the promised measures to simplify trading arrangements and putting in place requisite
facilities, Nepal-Bangladesh "trade distance" could significantly shorten,
changing from a situation of "so near, yet so far".
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