After Indo-Bangladesh memorandum of understanding this year, only one consignment containing 25,000 tons of fertilizer has been received through from the Rohanpur-Singhabad link. The route is yet not fully operationalized as no railway agreement is in place as yet.[break]
Although the Nepal-Bangladesh commerce secretary level talks were held in Dhaka in 2010, officials said the draft of the railway agreement is still being worked out.
“The benefits of the Rohanpur-Singhabad railway link will not materialize unless Birgunj is connected with Bangladeshi port of Mongla,” former Bangladesh´s Ambassador to Nepal, Humayun Kabir, told Republica. Mongla is the main sea port in the Bagerhat District of south-western Bangladesh.
Stating that a free trade agreement has been proposed between Nepal and Bangladesh, Kabir further said, “Bangladesh imports huge amount of agricultural products from India at a much higher cost, which we could get directly from Nepal.”
Likewise, the former envoy argued that Bangladeshi medicines are valued more in Nepali markets than Indian supply. He said Bangladesh could export such high-demand medicines to Nepal. “Medicines and consumer goods are some items that Bangladesh can export to Nepal.”
However, due to high tariff Bangladeshi goods cannot compete with Indian products which are now given duty-free access to Nepal. During the last commerce secretary level talks, the two sides proposed to start zero-tariff trade for at least a limited number of items. “We have proposed 10-10 items each from the two countries to start with,” Kabir said.
The next commerce secretary level talks is scheduled to take place in Nepal in early 2012.
Nepal´s envoy to Bangladesh Hari Shrestha said the next meeting scheduled to take place in Kathmandu is expected to finalize the modality of trade agreement with Bangladesh and look into tariff concessions.
While trade through railway transport still appears distant, Nepal is yet to work more on the land route, which is the Kakarvitta-Phulbari-Banglabandh route, connecting Nepal and Bangladesh to ensure smooth movement of goods. This route is used for trucks with cargo containers.
“Due to non-efficiency this route remains non-operational,” a Bangladeshi official told Republica on condition of anonymity. He said that there is lack of infrastructure and existing facilities have not been upgraded as well. Add to it customs, immigration and quarantine hassles.
Together, these factors have made rendered this route commercially non-viable to support additional trade. Mainly infrastructure on the Indian side of the Phulbari border is in bad shape, while it is better on the Bangladeshi side.
India has allowed Nepal-Bangladesh trade through Kakarvita (on the Nepal Border), Panitanki (the Indian border with Nepal) till Phulbari (which is on the India-Bangladesh border) and this 50-km long route is the shortest from Nepal to Bangladesh. At present, the movement of trucks from Nepal, on the Kakarvita-Panitanki-Phulbari-Banglabandh corridor, stops at Phulbari, from where the goods are shifted to trucks from Bangladesh.
Nepal has asked India to declare Phulbari as a bilateral transit land customs station. But India has only agreed to group escort of the vehicles, which has become time-consuming.
Water sharing
Bangladesh government has laid much stress on the water management, joint-river basin management and regional connectivity. The foreign affairs advisor to Bangladeshi PM, Gowher Rizvi, highlighted the importance of future cooperation on tripartite agreement on water management on sub-regional basis between Nepal, India and Bangladesh.
For a larger regional cooperation, Rizvi, stressed on early conclusion of the signing of the Testa water-sharing agreement with India. Addressing a gathering of media and civil society in Dhaka on Wednesday, Rizvi said, “For us time is very important and waiting is difficult.”
India backtracked from signing the Teesta agreement during Manmohan Singh´s visit to Dhaka in September due to opposition from West Bengal Chief Minister, Mamata Banerjee.
“We are interested in regional water resources and we realize Nepal´s potential,” former envoy Kabir commented. Arguing that there has been delay in realizing the water potential of the region, he added, “The SAARC electricity grid was proposed some 10 years ago. But nothing has come through it.”
Visa regime
The visa regime between Nepal and Bangladesh is non-reciprocal.
Although Nepal has now granted visa-on arrival facility to all SAARC member countries, Nepalis are charged exorbitant fees by all neighbors except India with which we have a visa-free and open border regime. Nepalis pay Rs 3,529 for a single entry visa to Bangladesh.
There existed visa free regime between the two countries for few years in 2005-06. “Visa charges to Bangladesh was waived in 2005, but has again being resumed,” Kabir said expressing no knowledge of the reason behind such a move.
According to Nepal´s embassy in Bangladesh, around 20,000 to 25,000 Bangladeshis travel to Nepal each year for tourism, academic, business and other purposes. Visa is free for first-timers to Nepal.
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