Wednesday, March 22 2006 17:23 Hrs (IST) - World Time -

New Delhi: Voicing concern over the rising trade gap with New Delhi, Bangladeshi Prime Minister Begum Khaleda Zia today(Mar 22,2006) asked India to allow duty free import of goods from its eastern neighbour and removal of non-tariff barriers.

"The ever-growing trade gap between India and Bangladesh is a matter of considerable concern for us not because India stands to be the gainer. Nevertheless, we are concerned because such a situation is hardly sustainable," Zia said.

"We would, therefore, urge our friends in India to facilitate preferential duty-free access to exports to India. We also look forward to dismantling of various non-tariff barriers," Zia told captains of Indian industry here.

While India's exports to Bangladesh in 2004-05 stood at two billion dollars, Bangladesh's exports to India were a meagre 140 million dollars.

Zia noted that a healthy growth of Bangladeshi exports will "greatly help us sustain our substantial imports from India".

Inviting Indian businessmen to inv est in her country, she said the it provided an investment friendly regime. It could also serve as the gateway to South East Asian markets and markets offering preferential access to the goods produced in Bangladesh.

Speaking on the occasion Union Commerce and Industry Minister Kamal Nath said, "We must develop a roadmap to address issues that are hindering the growth between the two countries.Joint Working Groups are discussing various issues including the possibility of India and Bangladesh entering into a bilateral FTA."

The Commerce Minister said a bilateral FTA (which would be SAFTA plus) would promote trade services and investment between the two countries.

"In the light of India-Sri Lanka FTA experience (after which India emerged as the third largest investor in Sri Lanka), the proposal of India-Bangladesh FTA should gather momentum," Nath said.'

He said greater connectivity was vital to improved economic ties between the two countries.

"We must encourage movement of goods across our land borders through sealed containers. Containerised movements of goods through riverine route, land route and railways between India and Bangladesh will considerably reduce the existing heavy congestion at the Petrapole-Benapole station," he said.

"At present, a container between Kolkata and Dhaka (via Singapore) costs 2,500 dollar and takes over 15 days, while if transported via rivers, it would cost only 500 dollars and five days," he said.

"Delays associated with customs loading and unloading at the land stations can be reduced through the conclusion of a Comprehensive Commercial Motor Vehicle Agreement," he said.

Such an agreement would allow trucks from both sides enter into each other's territory.

"This is similar to the practice being followed in the EU and the ASEAN. It allows seamless transport connectivity within the region," Nath said.

The Minister said that with operationalisation of SAFTA and India's initiative to address the market access issues of Bangladesh textiles and clothing sector by offering a TRQ, "We are certain that there would be a substantial increase in Bangladesh's exports to India."