Bangladesh should revisit the concept of transit and go for transshipment agreement to help India gain access to their seven northeastern states, said International Chamber of Commerce-Bangladesh (ICCB) yesterday.

The comments came following the much-trumpeted visit of Indian Prime Minister Dr Manmohan Singh to Bangladesh a month ago.

The visit had a mixed reaction both in India and Bangladesh among public leaders, civil society, diplomats and businesses, as the two main issues —sharing of Teesta water and the transit protocol —could not be agreed upon.

“The postponement of the transit agreement could be a blessing in disguise, as it will give Bangladesh government time to revisit the benefits to be derived from such a treaty,” the chamber said in its news bulletin released yesterday.

The ICCB said now the government can undertake costbenefitanalysis. “Apparently, the transit facilities will give more benefits to India's seven states in the northeast as the distance and time for transportation of goods will be reduced to almost one-third and thus save huge costs.”

“Indian producers will thus be able to sell their products in the region at a lesser price and consequently, Bangladeshi busi-

nesses will lose opportunities for expansion of trade to eastern India," it said.

In the past it was said that by allowing transit Bangladesh would earn hundreds of millions of dollars a year from India as transit fees and related activities. But a research finding by Centre for Policy Dialogue, a research organisation, recently said Bangladesh could expect no more than $2.3 billion in 30 years by giving transit to India.

“This is really a pittance compared to investment required to be made for infrastructure development within the territory of Bangladesh,” the ICCB said.

According to a recent study by Asian Development Bank (ADB),

transshipment concept could be the best option for both Bangladesh and India.

A transshipment treaty compared to the proposed transit plan will generate enhanced economic activities of several dimensions including creation of employment and business opportunity as well as ensuring security concern of Bangladesh.

In the event of transit, such a huge economic benefit will be completely denied to Bangladesh, said the chamber.

In the proposed transit plan, Indian trucks would be allowed to crisscross the territory of Bangladesh; while Bangladeshi trucks would have to stop at Indian border. This is, in fact, an

asymmetric connectivity plan, said the chamber.

India also has opened up rail and surface routes for transit to link Nepal and Bhutan with Bangladesh. It is claimed that transit fees from Nepal and Bhutan would bring good revenue for Bangladesh.

“But consider the facts: Bhutan's GDP is less than $2 billion and Nepal's economy is not big either. Besides, their economies are inextricably integrated with Indian economy. It is unlikely that a significant volume of cargo from Nepal or Bhutan (to & from) would go through Bangladesh simply because they don't manufacture much exportable goods,” according to the ICCB.