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Govt mulls fee formula for Bhutan transit

Refayet Ullah Mirdha
The government is working on a fee-based formula to give permanent transit for Bhutan in line with a framework agreement suggested by a panel, a senior official of the commerce ministry said yesterday.
The core committee on transit had originally recommended different fees tied to administrative costs, vehicle movement and port use in its report on transit to Nepal, Bhutan and India.
Initially, the Bhutan transit is being prepared to serve as a model for Nepal later. These two countries are entitled to access under the World Trade Organisation rules for being landlocked nations.
“We plan to allow permanent transit to Bhutan first. If it works well, Nepal will also come under the same protocol,” said Shahabuddin Patwary, member secretary to the committee on transit to
Bhutan after its first meeting at the commerce ministry.
At present, Bangladesh and Bhutan renew their transit deal through consultation under the guidelines of Trade and Transit Protocol and aTechnical Cooperation Agreement signed in 1984.
“Indian transit will be decided on later, as the government is now working on the core committee's recommendations,” he said.
The six-member core committee headed by Mozibur Rahman, then chief of Bangladesh Tariff Commission, submitted its report to the government last year.
Rahman later became head of the government's committee for preparing a protocol for Bhutan's transit facility.
Rahman convened the first meeting of the committee at the ministry yesterday, while a second is scheduled for tomorrow.
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The core committee also submitted a framework agreement on transit along with the recommendations, Patwary said, adding that the transit to Bhutan will be under the guidelines of this framework agreement.
He said if Bhutan is allowed transit facility, the Bhutanese transports will be able to go to other countries through Bangladesh. The current facility does not allow that.
Under the present terms, Bhutanese vehicles only come till the Bangladeshi Burimari Land Port through Indian Chengrabandha Land Port and then turn back.
The current facility is renewed time to time through consultation under the Trade and Transit Protocol and a Technical Cooperation Agreement signed in 1984. The two also inked a trade agreement in 1980.
The trade agreement was renewed twice since but the last renewal expired in 2000, Patwary said.
Manzur Ahmed, an adviser to the Federation of Bangladesh Chambers of Commerce and Industry and a member of the committee, said the committee will prepare the protocol soon which will work as a model for other transit agreements.
Trade between Bhutan and Bangladesh was worth $22.12 million in 2010-11, with Bhutanese exports to Bangladesh being $19 million, according to the commerce ministry.