OneWorld.net (U.S.)

NEW DELHI: Bangladesh urged India to dismantle trade barriers and allow preferential duty free exports to boost trade between the two countries.

"We would like India to allow preferential duty free exports from Bangladesh and also there is a need to dismantle the existing non-tariff barriers," said Begam Khaleda Zia, the visiting prime minister, at a luncheon meeting organized by the three apex chambers of commerce and industry.

Zia, on a three-day India visit, expressed concern over the wide trade gap between India and Bangladesh.

"It's not a matter of concern that India is a gainer, but under such circumstances it becomes unsustainable for the other partner," Zia said, adding there was a need to boost exports from Bangladesh to India.

She also offered India access to the South and Southeast Asian markets though her country.

"While Bangladesh is a strategic link to these nations geographically, it also enjoys preferential status in many countries with respect to trade. India can reach out to these markets through us," she said.

She urged India to make foreign direct investment (FDI) in Bangladesh. "We have a favourable investment regime with attractive incentives which Indian business houses can take advantage of," she said. "The country can act as a better business hub besides being a potential market."

Commerce Minister Kamal Nath said that trade hurdles between the two countries would be addressed with urgency. "The non-tariff trade barriers are there by default and not by intention," he said assuring that these would be removed soon.

Admitting that there was an imbalance in trade, the minister said: "A bilateral free trade agreement in addition to SAFTA could also substantially address the trade deficit issue."

Kamal Nath suggested that the joint economic council meetings should take place more often to ensure that trade between the two countries picked up.

Zia was accompanied by a team of business delegates and senior government officials who discussed prospects of investments with Indian companies and corporate houses.

The Tata Group is already in talks with the Bangladesh government for investing in the energy, steel and fertiliser sectors.

Source: South asia Media NetMore