India and Bangladesh have agreed to start negotiations for a free trade agreement at an early date. The decision was taken in a meeting between Commerce and Industry Minister Piyush Goyal and his Bangladeshi counterpart Tipu Munshi on Thursday.
During the meeting, both sides held comprehensive discussions to further strengthen bilateral economic relations, India's Ministry of Commerce and Industry said.
The free trade pact, officially described as a Comprehensive Economic Partnership Agreement (CEPA), will create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. The partnership would also establish reliable and sustainable Regional Value Chains (RVCs), the ministry pointed out.
According to the ministry, a joint feasibility study on a CEPA has been carried out after the two countries agreed for exploring a bilateral FTA. The study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries.
The two ministers discussed various issues of mutual interest including removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonization and mutual recognition of Standards and procedures on both sides, settlement of trade in Indian rupees, strengthening connectivity and trade infrastructure, among others, to realise the full potential of India-Bangladesh economic ties.
"Both sides also agreed to work together in order to resolve the issues raised during the course of the meeting and ensure that the outcomes expected in the Joint Statement by PM Narendra Modi and PM Sheikh Hasina, in September 2022 are achieved in letter and spirit at the earliest," the Ministry of Commerce and Industry said.
Bangladesh is the 6th largest trade partner of India and the biggest trade partner in South Asia. On the other hand, India is the second biggest trade partner of Bangladesh.
