Like most of the Indian delegations previously visiting Bangladesh the business team which came here lately from our big neighbour has stressed the need for transit facilities for reducing the huge trade gap between the two countries The Indians are quite unambiguous about their stand and there is no reason why we should fail to acknowledge that the measure could help narrow Bangladesh's trade deficit with India. But at the same time we would like to point out that this is not the only way out and certainly not the first step to embark on a workable and comprehensive process to roll back the trade imbalance.

Before going for the transit option there are several other snags to be removed and some simpler routes tried out. Opening transit facility is more a political than a trade decision. As the relations between the two countries now stand, the decision on a trade corridor through Bangladesh may wait for sometime. Still marked by unresolved problems, the relations between the two countries will perhaps need some vigorous ground-working before going for such a step.

Bilateral trade with the provision for more goods from Bangladesh entering Indian market may be part of the reversal process. Products from Bangladesh have to face an unreasonably high tariff value at the time of entering the Indian hiarket. This is specially in case of the consumer goods and India applies this as a weapon without discrimination to protect its domestic industries against all foreign products. A curious thing to note here is that Indian consumer goods do not have to face such a high tariff value while entering Bangladesh market. Ilie Indians may be right in replying that they are not resorting to discriminatory treatment in trade. But if the Indian products face lower tariff here, we too can demand for equal — if not further concessional — terms in exporting our goods to India.

This certainty is not asking for any preferential treatment but only reciprocity. If the tariff value is same at both ends none stands.to lose. In addition. the technical problem of differential treatment can be overcome under the umbrella of the South Asian Preferential Trade Agreement (SAPTA). It is also permitted under the Bangkok Declaration applicable for LDCs.

More pertinently, if the two sides are serious enough, they ought to explore areas where the , trade-gap can be addressed even more effectively. Collaborative ventures in Bangladesh with Indian investment can succeed through a buy-back arrangement. We are happy to learn that the joint statement of the Joint Business Council meeting has focused on possible Indian investment here and also on the need for aggressive marketing strategy for Bangladesh goods in India. These practical measures will not only address the problem proper but may facilitate the way of opening a business corridor for India through Bangladesh territory to the advantage of both.

Much as the transit route may be beneficial for both, it will be too early to allow India to use such facilities now. Given the political implications and sensitivity associated with the issue, the preparation of a ground work is very much necessary. So we feel that it is better to go for. the first thing first. Once the confidence building and the cooperative exercises have been completed, all the political and complex issues will be easier to solve. We are looking forward to an environment where commercial, economic and political concerns become complementary to each other between the two countries. The reduction of trade gap is one of the priorities that has to be addressed property and in the right earnest.