‘India’ is major barrier for Bangladesh-Nepal trade

Transportation is one of the major barriers in bilateral trade between two South Asian countries Bangladesh and Nepal, and India is considered as responsible for that as the both countries’ cargos carrying goods have to cross the neighboring country.

As per a trilateral accord signed in 1998, Bangladesh and Nepal have been using the Kakarbhitta-Fulbari-Bangalabandha route, the shortest route between the countries through India, for their bilateral trade.

Bangladesh exports agricultural products, chemical, raw materials, medicine, ready-made garments, jute products, plastic products, leather products, cosmetics, fabric, potato, milk powder, biscuits, raw juice, tube-light and lubricants to Nepal, while imports tobacco products and vegetables.

Nepal, a land-locked country, is just 40 km from Bangladesh’ Banglabandha, but cargos have to wait for hour after hour to pass the route, according to the Bangladeshi businessmen.

They face acute hurdles to export goods to Nepal through India due to transit problem. Infrastructural and port facilities are also not enough and sometimes the cargos have to wait for several days due to political and social problems as well as different festivals in India.

The negative impact on bilateral trade between the two countries is visible. Bangladesh’s exports to Nepal amounted to $1,78,80,000 and imported to $94,30,000 during the 2015-16 fiscal year, while the amounts were $4,15,00,000 and $2,61,00,000 respectively in 2011-12 fiscal year, according to data from the Bangladesh Export Promotion Bureau.

Dhaka Chamber of Commerce and Industry (DCCI) president Abul Kashem Khan said, “The government should solve the problems we face. Government to government (G2G) initiatives should be taken to remove tariff and non-tariff barriers.”

“Free-trade expansion is not possible if we cannot develop communication system,” he added.

Md. Shafiqul Islam, additional secretary to commerce ministry, told jagonews24.com, “The government is cordial to regional connectivity and trade, and that’s why top level policy makers are trying to ensure smooth communication between Bangladesh and Nepal.”

(The article originally published in Bangla edition of Jagonews24.com is written in English by Zahidul Islam)