A Bangladeshi minister has called for the simplification of trade arrangements, particularly in respect of letters of credit (L/Cs) for Indian importers, to facilitate greater volumes of commerce between his country and states in northeast India.

Bangladesh's foreign minister Morshed Khan specifically highlighted difficulties experienced by traders in northeast India obtaining L/Cs locally during his talks with India's commerce and industry minister, Kamal Nath.

Long distance L/Cs

According to official sources Khan said traders in northeast India have to travel very significant distances to Calcutta or Delhi to secure L/Cs for purchases from Bangladesh.

The minister said these Indian importers should be able to open at L/Cs at local banks.

Barriers to trade

In a wide-ranging list of ideas to boost bilateral trade between the two countries, Khan says he is keen to see the removal of non-tariff barriers between Bangladesh and India.

The foreign minister also proposed improvements to land port and storage facilities on the Indian side of the border between the two countries at Petrapole and Phulbari. These facilities he says lag behind those on Bangladeshi territory.

Harmonisation of trade

Khan emphasised the need to harmonise standards testing institutions in both countries and suggested a concept paper on the harmonisation of standards should be drawn up. This idea was accepted by India.

An Indian official who also attended the meeting suggested Bangladesh could import more Indian fabric if the shipments from India were made duty-free.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO