TRADE, transit, investment, tourism and human resources development have been the main areas of cooperation in the Nepal-Bangladesh relations, which has remained warm, cordial and friendly ever since the independence of Bangladesh in 1971. Given (he geographical, economic, and ecological complimentarities between the two countries and the opportunities and potentials for mutual benefit, cooperation between Nepal and Bangladesh can progress towards the maximizing even greater benefits to the peoples of the two countries.
Trade: Trade is increasingly becoming the central thrust in the flourishing Nepal-Bangladesh relations, especially after the opening of the K a k a r bhi 11 a•P h u1b a r i -Banglabandh-Mongla transit route, which allows Nepal an access to and from the sea through territories of India and Bangladesh. The opening of the transit route since September 1997 has not only widened the possibility of diversifying Nepal's trade with countries overseas, it has equally liberated (he potential of promoting trade and investment between Nepal and Bangladesh. Since that time there is a growing enthusiasm on (he part of (he traders on both sides for increasing the volume and value of exports from their countries.
Traditionally, the volume of trade between Nepal and Bangladesh is not significant considering the potentialities and product complimentarties between the two countries. Pulses, wheat, rice, tyre-tubes, and vegetable seeds are the major items exported from Nepal to Bangladesh. Nepal imports industrial raw materials, chemical fertilizers, machinery equipment and textiles form Bangladesh. Bangladesh is a potential importer ol a number of Nepalese products including Nepalese rice, vegetables and fruits, stone boulders, pebbles, cardamom, ginger, tea. handicraft products, and agro-based and horticultural products. Lately, Nepalese fresh milk and milk products have been identified for potential business in Bangladesh. Similarly. pharmaceutical products, cloths, urea and consumer goods can be imported from Bangladesh.
Business loaders from both countries are identifying the commodities that can be promoted in each other's market. There have been regular exchanges of business delegations on either side. A joint task force consisting of expert members from die Federation of Nepalese Chambers of Commerce and Industry (FNCC1) and the Federation of Bangladesh Chambers of Commerce and Industry was formed recently (April 4. 2000) in order to explore the possibilities for increasing volumes of trade. The Royal Nepalese Embassy is maintaining liaison with the chambers of business and industry in
Nepal and Bangladesh and replying inquiries on trade, tourism and Investment related inquiries, while executing promotional activities on trade, investment and tourism.
Transit- TYansit is a significant aspect of the economic relations between Nepal and Bangladesh. Nepal has appreciated the generous offer of Bangladesh for allowing their territory for transit of Nepalese goods to and from the sea. Bangladesh and her ports not only offer a nearer and easier access to the sea, the cost of transit to and from the sea can also be cheaper.
In a Transit Agreement signed in 1976, Bangladesh has offered Nepal use of six transit points, including the ports facilities at Mongla and Chittagong ports and the land point of Banglabandha. The opening of Banglabandha transit route in 1997 has been a significant development in the relations between Nepal and Bangladesh and it has ushered an era of increased trade and cooperation between the two countries. The Government of Bangladesh has pledged to upgrade the services and infrastructure along the route, including the improving facilities at Banglabandha.
Though (he full potentials of the Banglabandha route has yet to be utilized, some traffic has been generated and several trucks carrying fruits, vegetables, limestone, baby food, pulses, tyres and lubes, batter-
ies and raw jute have been moving through (he route without major difficulties.
Investment: Banking sector has seen successful joint venture investment between Nepal and Bangladesh. Similarly, two joint ventures in the insurance sector have also been launched in 2000. Business leaders in both countries are also exploring the joint venture investment on other areas. Some proposals have been moved in Nepal between Nepalese and Bangladeshi industrials for joint ventures in the pharmaceuticals, ready made garments, PVC pipes, mineral water, restaurant and cement/clinkers.
Sugar industry, chemical fertilizers. rock boulders, and dairy industry' could be other areas of potentially suitable joint ventures between Nepal and Bangladesh. There are good possibilities of promoting joint ventures in the fields of ready-made garments, woolen carpets, jute and chemical fertilizers. There is a sizeable market and hence investment potentials in Nepal for the Bangladeshi pharmaceutical products. Leather goods, textiles, hotels and tourism are (he other attractive areas forjoint venture.
Nepal offers unique opportunities for trade and investment. There is business -friendly and proinvestment environment as the government has adopted a liberal economic policy. Foreign companies can own up to 100 percent equity. Full repatriation of profit in convertible currency is allowed. There is a guarantee against nationalization and multilateral guarantees are available for avoiding any risks. There are oi her incentives like tax holidays and no-tax regime for exportable items. Nepal offers one-window service to the investors and proposals are cleared within thirty days of application. Besides a peaceful environment. Nepal has a cheap and easily trainable labour market. Financial
1 services krdwtlt'developed. Investors from Bangladesh should really seize this opportunity for investment in
Tourism: Nepal and Bangladesh possess true complimentarities and ci imbinafions in enhancing mutually beneficial regional tourism as well as in attracting tourists from all over the world. Whereas Nepal offers majestic Himalayas and diverse cultural heritage with a combination of trekking and other adventure tourism, Bangladesh's Sundarban delta and splendid sea beaches with a rich cultural heritage offer unique attractions. Tourists could combine these destinations if tours could be articulately packaged to suit the visitors. . There is a potential for seizing die
opportunity in the burgeoning tourist interest within the region.
Hie Biman Bangladesh Airlines, which has been operating flights between Kathmandu and Dhaka for the last several years, has promoted tourism between the two countries. There might be more direct Bights from Dhaka to Kathmandu in the future. There is also (he potential of operating a tourist bus service between Kathmandu and Dhaka. A Nepal package tour launched by the private sectors of the two countries is doing good business. Nepal is not only very close destination for Bangladeshi tourists, it offers the easiest access to visitors. Visas are available al the Royal Nepalese Embassy or al the airport or immigration point upon arrival. There are several moderately priced hotels and guesthouses for economy travelers. Nepal can become a reasonably closer and cheaper destination for Bangladeshi tourists.
Natural Resources: There is also (he potential cooperation in the exploitation of natural resources for mutual benefit. While Nepal is abundantly endowed with water resources with huge potentials of generating hydropower, Bangladesh is literally Boating on extensive deposits of natural gas. The utilization of gas in (he value added industries like chemical fertilizers could be of mutual benefit to both Nepal and Bangladesh as there is the possibility to supply chemical fertilizers from Bangladesh to Nepal on a regular basis.
Nepal's water resources could be harnessed for the benefit of the entire region and could nor only bring cheaper power but also substantiaUy reduce Roods in Bangladesh. The special importance of cooperation in water resources stems from the fact that all major rivers of Nepal enter into Bangladesh as Padma via India as the Ganges. A joint study on Mitigation of the Incidence of Floods in (he Future and on Exploitation of Water Resources through Multiple and Optimal Use has been completed in jhe various uses of water resources, including irrigation,• power, navigation and Bood control The implementation of the recommendations could bring mutual benefit.
Human Resources: Bangladesh has made significant contributions in the field of training Nepal's technical manpower. Hundreds of Nepalese students are studying in various institutions of higher study in Bangladesh in different disciplines such as medicine, engineering, agriculture. nursing, pharmacy, forestry', textile, fine arts etc. Quite a substantial number of Nepalese medical graduates are pursuing postgraduate studies. Several nongovernment universities and some private medical and engineering colleges are also offering higher education to Nepalese students. There is further potent ial for sharing the expertise on training human resources from either side.