Nov 9, 2009
Source: Internet
Duty free export on 18 farm products
Bangladesh-Bhutan Bilateral Trade Agreement9 November, 2009 - In a landmark trade agreement between the government of Bangladesh and Bhutan, the government of Bangladesh has agreed to eliminate tariff on 18 major agricultural products Bhutan exports to Bangladesh.
The bilateral trade agreement was signed on Saturday, November 7.
After the first trade agreement was signed in 1988, The Bangladesh government slashed the import duties on these 18 products to 15 percent in 2003.
Speaking at the signing ceremony the Bangladeshi Prime Minister, Sheikh Hasina, said that the renewed trade agreement was an initiative that would result in economic growth of both the countries.
“The meeting that I have had today with His Majesty and the Prime Minister covered a wide range of issue related to our bilateral relations. We have discussed how Bangladesh and Bhutan would increase trade and establish smooth ties, tackle climate change impacts, collaborate in tourism, cooperate in water and energy sector and on Bhutanese students studying in Bangladesh,” said Sheikh Hasina.
Lyonchhoen Jigmi Y Thinley said that in having eliminated tariff on 18 major categories of export, Bhutan should benefit considerably in the promotion of happiness of the people of Bhutan. “This is because most of the beneficiaries are going to be people in the rural areas, it’s going to be the farmers,” he said.
The economic affairs minister, Lyonpo Khandu Wangchuk said, “This gesture of the Bangladesh government to grant duty free access will go a long way in enhancing the income of our farmers and through that, Bangladesh will also contribute to the government’s commitment to alleviate poverty and ensure economic prosperity in the rural areas.”
The number of commodities that would be traded, was also increased from 74 to 90, said Lyonpo Khandu Wangchuk. “In order to promote bilateral trade, Bhutan has always maintained duty free access to all items Bangladesh exported to Bhutan. Similarly Bangladesh on its part, have been accorded tariff concessions to our exports to Bangladesh.”
Another key feature of the bilateral trade agreement was the addition of a new trade route that is expected to benefit eastern Bhutan. The new route to Tamabil, northeastern Bangladesh, passes through the Indian states of Assam and Meghalaya and is the fifth route the two countries have identified to enhance trade.
The Bangladeshi Prime Minister also presented the earthquake relief assistance to Bhutan.
At a banquet hosted in honour of the Bangladeshi prime minister on November 7 Lyonchhoen Jigmi Y Thinley said that Bhutan attaches high importance to its relations with Bangladesh, a country with which Bhutan shares a common heritage of social, cultural and trade relations that can be traced back many centuries.
“For the first time in April next year, Bhutan will be hosting the 16th SAARC Summit and we greatly look forward to receiving Your Excellency in Thimphu once again,” said Lyonchhoen Jigmi Thinley. “As a founding member, Bhutan attaches high importance to SAARC and will continue in our endeavour to contribute to the SAARC progress.”
