India, Bangladesh agree on trade draft

As a prelude to the proposed Free Trade Agreement, India and Bangladesh have agreed on a revised draft of bilateral trade agreement signed in 1980.

An agreement to this effect is likely to be signed soon once an approval is obtained by both the governments, an official release said in New Delhi.

The decision was taken at the three-day India-Bangladesh trade talks, held in Dhaka from October 20. The Indian delegation was led by the commerce ministry's joint secretary S Ramasundaram and his Bangladesh counterpart Elias Ahmed.

In the first round of negotiations on FTA, India made a detailed presentation on the success of its FTA with Sri Lanka and the prospects for the same with Bangladesh.

Reflecting the current global sentiment on regional trade arrangements, both countries reiterated their commitment to conclude the FTA at the earliest, the release said.

India also asked Bangladesh to withdraw ban on land route for a number of Indian exports, notably cotton and other yarn, it said, adding Bangladesh agreed to lift the ban once issues relating to informal trade was resolved.

During the joint secretary level meeting, India also raised the issue of long pending application of a joint venture promoted by Sun Pharma saying the delay would have adverse impact on Indian investment, especially in view of the proposed FTA.