Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 423 Thu. August 04, 2005  
   
Editorial


Editorial
Trade talks with India
High time for breakthrough
Once again the India-Bangladesh Joint Working Group on Trade Issues has ended its dialogue with little to show for the two days of discussion. The process began in October 2003, and since then there have been regular rounds of talks. However, precious little seems to have been accomplished, and it is hard to escape the conclusion that the reason for the slow pace of progress is the lack of bilateral political will to really enact policy that would ease the differences.

This is not to say that no progress whatsoever has been made or that the talks have not had a positive outcome, however modest. The most important thing that we have noted is that the rhetoric between the two sides has been toned down, and this is surely a good thing. No progress can be made if the two sides approach things in a confrontational and accusatory manner, and the cool-headedness and civility observed in the last round of dialogue is certainly a step in the right direction.

The working group has also confronted the thorny issues head on and the contentious points and differences have been openly laid on the table. Nevertheless, with a trade deficit of over $1 billion and talk of an FTA on the table, to say nothing of the operationalising of Safta at the beginning of next year, we would have liked to have seen more headway made.

Specifically, the issue of non-tariff barriers to the Indian market remains a problem. India apparently remains skeptical as to the efficacy of our testing institutions and procedures. However, when one considers the fact that Bangladesh does actually export to other countries and that we have our own incentives to ensure that Bangladeshi products meet international standards, the suspicion that India is using its non-tariff barriers as a hurdle for exporters seeking to access the Indian market remains. Furthermore, there is a good argument to be made that the Indian certification and testing regimen that they impose on imports is unduly burdensome and again intended primarily as a protectionist measure.

The good news is that India will send a team to check our quality control and testing facilities and procedures in January, with a view to easing restrictions in future. The bad news is that unless there is concerted effort made at the highest policy-making levels by the two governments, then this stalemate which benefits neither country will continue indefinitely. And it is Bangladesh that suffers more disadvantage from the status quo.