Nepal and Bangladesh are aiming to ink an agreement in May, which would
pave way for commencing the operation of transit route between the two
countries. The draft of the agreement was finalized more than a year ago.
Ministry of Commerce and Supplies (MoCS) has started preparations for the secretary-level talks scheduled to be held in Katmandu in May during which an agreement on transit route will be signed, an official of the ministry said on condition of anonymity. However, the two sides are yet to finalize the exact date of the meeting.
The draft was finalized during a commerce secretary-level talk held in Dhaka in 2010. The meeting had also decided to hold next bilateral meeting in Kathmandu between February and March this year.
According to Naindra Prasad Upadhya, joint secretary at the MoCS, though agendas of the meeting are yet to be finalized, Nepal is seeking for a zero tariff facility from Bangladesh.
However, Nepal does not intend to provide similar facility to Bangladesh. Nepal cannot provide equal and less than equal tariff treatment to any third country as per the revised Trade Agreement 2009 between Nepal and India.
"This is the reason why we are not preparing agenda on tariff," the official said. "We are only looking forward to establishing connectivity with Bangladesh."
The draft of the agreement on bilateral transit includes provisions that allow Nepal to use Mongla and Chittagong ports for international trade. Nepali traders are currently facing problems in transit of goods through Fulbari-Banglabanda route due to complicated transit process.
Nepali exporters also have to bear up with poor road infrastructure along the Kakarvitta-Fulbari-Banglabanada route and hassles caused by Indian security personnel.
The proposed pact is crucial to boost Nepal´s exports to Bangladesh. According to statistics compiled by Central Bank of Bangladesh, Nepal exported goods worth $7.5 million during the three months between July and September last year, compared with imports of $3.6 million from the country in the same period.
Statistics shows lentils contribute to 75 percent of Nepal´s export to Bangladesh. The agreement, which is expected to improve connectivity between the two countries, is expected to further boost Nepal´s trade with Bangladesh.
Secretary Purshottam Ojha, who was recently transferred to the Prime Minister´s Office from the MoCS, however, said Nepal´s progress in signing a deal with Bangladesh has been very slow.
"Though Bangladesh is ready to ink the pact any time, the progress on our side has been slow," he said.
Ministry of Commerce and Supplies (MoCS) has started preparations for the secretary-level talks scheduled to be held in Katmandu in May during which an agreement on transit route will be signed, an official of the ministry said on condition of anonymity. However, the two sides are yet to finalize the exact date of the meeting.
The draft was finalized during a commerce secretary-level talk held in Dhaka in 2010. The meeting had also decided to hold next bilateral meeting in Kathmandu between February and March this year.
According to Naindra Prasad Upadhya, joint secretary at the MoCS, though agendas of the meeting are yet to be finalized, Nepal is seeking for a zero tariff facility from Bangladesh.
However, Nepal does not intend to provide similar facility to Bangladesh. Nepal cannot provide equal and less than equal tariff treatment to any third country as per the revised Trade Agreement 2009 between Nepal and India.
"This is the reason why we are not preparing agenda on tariff," the official said. "We are only looking forward to establishing connectivity with Bangladesh."
The draft of the agreement on bilateral transit includes provisions that allow Nepal to use Mongla and Chittagong ports for international trade. Nepali traders are currently facing problems in transit of goods through Fulbari-Banglabanda route due to complicated transit process.
Nepali exporters also have to bear up with poor road infrastructure along the Kakarvitta-Fulbari-Banglabanada route and hassles caused by Indian security personnel.
The proposed pact is crucial to boost Nepal´s exports to Bangladesh. According to statistics compiled by Central Bank of Bangladesh, Nepal exported goods worth $7.5 million during the three months between July and September last year, compared with imports of $3.6 million from the country in the same period.
Statistics shows lentils contribute to 75 percent of Nepal´s export to Bangladesh. The agreement, which is expected to improve connectivity between the two countries, is expected to further boost Nepal´s trade with Bangladesh.
Secretary Purshottam Ojha, who was recently transferred to the Prime Minister´s Office from the MoCS, however, said Nepal´s progress in signing a deal with Bangladesh has been very slow.
"Though Bangladesh is ready to ink the pact any time, the progress on our side has been slow," he said.
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