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Dhaka-Thimpu to renew trade deal

REZAUL KARIM
Bangladesh and Bhutan would soon renew the bilateral trade agreement and the related protocol to further expand trade between the two countries.
Dhaka would also give Thimpu further tariff concessions and dutyfree access to some Bhutanese commodities, sources said.
The cabinet has approved a proposal to renew the trade agreement with amendments to the previous one and the related protocol.
The commerce ministry placed the proposal at the cabinet meeting held with Prime Minister Khaleda Zia in the chair on April 28.
The two countries had signed a trade agreement in 1980 and the protocol in 1984, both of which expired in September 2000. But export and import between the two sides continued on the basis of
mutual understanding.
However, a commerce secretary-level meeting between the two countries in November 2002 sought renewal of the expired agreement and protocol with certain amendments.
Accordingly, a draft of the agreement and the protocol was prepared with a consensus between the two sides.
Prior to the cabinet approval, the law ministry had vetted the amended agreement and protocol. Earlier, the amendments were adopted at a meeting of the foreign ministry, National Board of Revenue, Bangladesh Bank and other authorities concerned.
The 1980 agreement had 11 articles. Five of them have been retained with some changes and a new article relating to tariff concession has been included in the amended agreement. It proposed raising the number of points of entry and exit of commodities to
eight from four now.
The four new points are Nakugaon, Haluaghat, Banglabandha and Burimari. Following an understanding between the two countries, Burimari point is already being used for the last few years.
Meanwhile, Bangladesh is giving 50 per cent tariff concession to some Bhutanese commodities including fruits, fruit juice, red chilly and ginger. But Bhutan is giving duty-free access to some Bangladeshi goods.
On July 1 last year, Thimpu included a new article in its customs law, providing for duty-free access to goods from those countries who reciprocate the same. Through an executive note, Thimpu however continued to give Dhaka duty-free access for some of its goods.
Now, Bhutan has asked FROM PAGE 12
Bangladesh to include such an article in the trade agreement.
Sources said the cabinet noted that the volume of trade between Bangladesh and Bhutan is not so big and emphasised raising the export to Bhutan. Renewal of the trade agreement with amendments would facilitate export of industrial products to that country, it felt.