As the
Government of Nepal negotiates a preferential trade agreement (PTA) with
Bangladesh, persuading Bangladesh to remove an array of duties and charges that
it levies over and above basic customs duties on products of export interest to
Nepal should top the negotiating agenda, experts and traders emphasized, in a
programme organized on Sunday on Nepal-Bangladesh trade and connectivity.
While basic
tariffs in Bangladesh average some 25 percent on agricultural and food products
of interest to Nepal, para-tariffs raise the total border tax rate to more than
90 percent on key products.
Given the
consistently high economic growth rate recorded by Bangladesh, the huge size of
its economy, its geographical proximity to Nepal, and its substantial amounts
of imports of agricultural and food products of export interest to Nepal, Nepal
cannot ignore the Bangladeshi market and therefore must enter into a preferential
trade agreement (PTA) with it to boost Nepal’s exports to this market, said Dr
Posh Raj Pandey, Chairman, South Asia Watch on Trade, Economics and Environment
(SAWTEE), in a programme jointly organized by the Ministry of Industry,
Commerce and Supplies (MoICS) and SAWTEE
on the eve of the departure of a team of negotiators from Nepal for Bangladesh.
A PTA is particularly necessary to remove an array of high tariff and
para-tariff barriers in Bangladesh on goods of export interest to Nepal, he said.
Noting that beginning in 2013, Nepal’s trade balance with Bangladesh shifted
into negative territory from a surplus, he suggested that Nepal seek
concessions on tariffs and other duties and charges on at least 76 agricultural
and food products identified by a SAWTEE study as having high export potential,
with a focus on 18 products for which Bhutan already gets tariff- and
para-tariff-free access to Bangladesh under a bilateral agreement between the
two countries. The study also recommends including a provision for a mutual
recognition arrangement in the PTA to guard against the possibility that
standards-related and technical regulations in one county might hurt exports of
another as bilateral trade grows.
Kishore Pradhan,
Vice-President, Federation of Nepalese Chambers of Commerce and Industry
(FNCCI), said that Nepal’s priority should be to get concessions on products
where Bhutan has already secured concessions from Bangladesh. Delays in
releasing letter-of-credit payments from the Bangladeshi side should also be
addressed, he added.
Rita Simha,
President, Federation of Women Entrepreneurs’ Association of Nepal (FWEAN),
noted that there is high demand in Bangladesh for amresho, ginger, cardamom and tea, and urged the government to
facilitate standards-related certification of these products to enable their
access to the Bangladeshi market.
Navraj Dhakal,
Joint Secretary, MoICS, said the government has its sights set on securing
concessions on around 20 products, adding that the goal is to have a “package
deal” that addresses not just tariff barriers but also para-tariff barriers,
besides issues concerning standards, customs valuation and business visa, among
others.
Purushottam
Ojha, former Secretary, MoICS, suggested that connectivity issues be included
in agreement, and recommended that the government go for an early harvest that
will yield tariff and para-tariff concessions on priority products.
Baikuntha Aryal,
Secretary, MoICS, said the ministry is cognizant of the need for setting a firm
timeline for the implementation of points agreed during different phases of
negotiations. Focusing on select priority products, the government will press
for timebound implementation, he said.
Traders
exporting to Bangladesh called for a provision for visa-on-arrival for Nepalis
entering Bangladesh via the land route. They also urged the Nepal government to
ensure better transit-transport connectivity between Bangladesh and Nepal,
pointing out that the Fulbari-Bangalabandh route, originally meant for
Nepal-Bangladesh trade, has become congested as it now has to also serve
Bhutan-Bangladesh trade and India-Bangladesh trade, with Bhutanese cargo getting
priority in clearance.
Media Coverage:
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