Bangladesh commerce minister Tipu Munshi will visit India this week for talks aimed at pushing forward trade ties between the two sides, including the conclusion of a trade deal and assured supplies of essential commodities such as rice and wheat.
The two countries finalised a joint feasibility study for a proposed Comprehensive Economic Partnership Agreement (CEPA) earlier this year, and the next steps to take forward negotiations on the deal are expected to figure in Munshi’s upcoming meeting with his Indian counterpart Piyush Goyal, people familiar with the matter said on Monday.
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Munshi, a senior leader of Bangladesh’s ruling Awami League party, will be in India during December 21-24 at the invitation of Goyal. He is also expected to meet other senior Indian leaders.
Following a meeting between Bangladesh Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi in New Delhi in September, both leaders welcomed the finalisation of the joint feasibility study, which recommended the CEPA will be beneficial for both countries.
The leaders also directed trade officials from both sides to start negotiations on the CEPA within 2022 and to complete the talks in time for Bangladesh’s graduation from “least developed country” status in 2026.
{{/usCountry}}The leaders also directed trade officials from both sides to start negotiations on the CEPA within 2022 and to complete the talks in time for Bangladesh’s graduation from “least developed country” status in 2026.
{{/usCountry}}Munshi will give a push to broadening the economic and trade engagement with India, including talks on the CEPA, the people said. They said the trade deal is important as it will be the first such agreement for Bangladesh and a large Asian country.
The Bangladesh side is also expected to raise the issue of India’s anti-dumping duties on jute and jute products from the neighbouring country, which was imposed in 2017, and seek assured supplies of essential commodities such as vegetables, wheat and rice from the Indian side, the people said.
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“The supply of these essential commodities needs to be made predictable. As economic linkages between the two countries have deepened in recent years, Bangladesh perceives India as a key supplier of these essential commodities,” one of the people cited above said.
Pointing to disruptions in the supply of items such as onions in past years and the impact on the Bangladesh economy, the people said the Bangladeshi side is looking for some sort of assurances regarding the steady supply of goods such as rice and wheat at assured prices. This will also obviate the need for Bangladesh to turn to other countries such as Vietnam for procuring rice, the people added.
In August, Bangladesh finalised deals with India and Vietnam to import 330,000 tonnes of rice to replenish reserves and bring down domestic prices.
India is Bangladesh’s second-largest trade partner in Asia. Despite disruptions due to the Covid-19 pandemic, two-way trade grew by 44% from $10.8 billion during 2020-21 to $18 billion during 2021-22.