The Hindu : Bangladesh rejects transit facility for India

Online edition of India's National Newspaper
Thursday, Dec 12, 2002

International

International

Bangladesh rejects transit facility for India

By Haroon Habib

DHAKA DEC. 11. The Bangladesh Finance and Planning Minister, Saifur Rahman, has outrightly rejected any transit or trans-shipment facility for India, saying the country's entire road system would collapse if such facilities were given.

Mr. Rahman said: "Transit and trans-shipment to India is impossible because of the poor conditions of the roads ... The roads and bridges are not for trucks with a capacity of 30 to 35 tonnes".

The Government's rejection has come at a time when Dhaka and New Delhi are in the midst of a war of words following Indian allegations of the presence of the Al-Qaeda network, growth of Islamic fundamentalists, including increased activities of Pakistan's ISI, in Bangladesh after the change of Government in Dhaka last year.

Addressing a seminar on "Bilateral trade with India and Economic Security of Bangladesh" held at the Bangladesh Institute of International and Strategic Studies on Tuesday, Mr. Rahman described India as an "aggressive and a difficult country to live with". But "we have to live with them. So, any bilateral issue will have to be handled with cautiously and diplomatically."

Since Indian goods were cheaper and of better quality, they flood "our markets", he said adding, "we have opened up our market to foreign goods and there is no reason why there should be a restrictive policy for Indian goods".

Stressing the need for "tight security" by intelligence agencies and the customs department, Mr. Rahman requested the business community to bring to his notice any "misuse" by the Indian companies of "our liberalised trade policy".

"We often hear that Indian companies are dumping their goods in our country but nobody has ever come to me with valid documents," he said. "I would definitely move a strong anti-dumping law in Parliament if anyone can come up with evidence of such misuse".

The Minister said many Indians were working in Bangladesh and Indian shops were also being opened without any formal approval. "They treat us as if we do not have any law in this regard.''

The Commerce Minister, Amir Khasru Mahmud Chowdhury, blamed the weaknesses of the trade bodies and Government institutions for failing to have a policy to address trade matters with India. "Elements of patriotism is very strong among Indian businessmen and consumers as well, which is missing among us as a nation", he said.

The Director-General, BIIS, Maj.Gen. S.M. Shahabuddin, said trade from India also undermined the country's internal security.

Giving a set of policy guidelines for addressing the issue of smuggling, leading economist Atiar Rahman suggested regular monitoring of India's economic trends, dialogue between the two Governments, a conscious move from Bangladesh to mitigate the trade imbalance, adjusting the exchange rate between the two neighbours.

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