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Bangladesh flooded with Chinese products... India to pip China as our largest trade partner: Ghulam Muhammed Quader
Bangladesh flooded with Chinese products... India to pip China as our largest trade partner: Ghulam Muhammed Quader
Interview with Bangladesh commerce minister
Shine Jacob / New Delhi Oct 04, 2012, 00:32 IST
A year after what was “set to be a historic deal” on Teesta water sharing being derailed by West Bengal Chief Minister Mamata Banerjee, Bangladesh is still hopeful about the deal and improving ties with India. The neighbouring country’s commerce minister, Ghulam Muhammed Quader, speaks to Shine Jacob about the future of the relationship, economically and bilaterally. Edited excerpts:
Last year, during the visit of Prime Minister Manmohan Singh to Bangladesh, a lot of economic and bilateral decisions were taken? Are you satisfied with their implementation?
Many of the bilateral issues were agreed upon and some of them were signed; now the implementation is under process. In certain matters, the agreements are being delayed due to other factors; for example the Teesta treaty where the West Bengal government has some objections. Issues related to enclave situation and people there were also finalised during the Indian prime minister’s visit, but some constitutional amendments need to be done by the Indian government. The present government in India is sincere in implementing whatever they have promised.
Teesta water-sharing treaty saw a lot of last-minute drama, when Mamata Banerjee stood against the increase in water share for Bangladesh from 25,000 cusecs (cubic feet per second) to 50,000 cusecs. With Banerjee’s exit from the UPA coalition, do you see any future of this treaty?
More or less, the situation still remains the same. What we are optimistic about is the treaty, that the Indian government has agreed to, is reasonable and rational. In addition to this, according to the international protocol, the river is flowing from India to Bangladesh, which is also in favour of us. Whatever the hindrance, India is always assuring us that it would be sorted out soon.
The fallout of the Teesta agreement led to the pause of the transit treaty from your side. What is happening with this?
In the transit case, we are agreeable to allow transit to India. From our side, we wanted to have transit to Nepal and Bhutan also. We wanted it to be a win-win situation for both the countries. However, infrastructure in Bangladesh is a concern for us, as road and rail facilities have deteriorated. If Indian trucks are allowed, that can create pressure on our road infrastructure facilities.
How can this problem be solved?
We want India to share the cost of these infrastructure developments, and this is being discussed now. A core committee was formed on this with experts from government and other private stakeholders. It has already submitted the report.
Trade deficit is one of your major concerns. While Bangladesh imports Indian goods worth $5 billion, exports are only around $500 million. How are you going to tackle this?
It is very easy. We are importing a lot of things from India, mainly raw materials for our exports and other essential products. Our concern is to increase the trade volume with India. It has allowed us some big facilities under SAFTA. Almost 99 per cent of the products, except tobacco and alcohol, is duty free. It is like Bangladesh can trade with India in the same way like any other state in this country. In future, we will try to make use of this. Still, there are problems related to para tariffs, non-tariff barriers and regulations on tested items from Bangladesh, which need to be sorted out. Bangladesh and India suffered due to lack of trust. India used to think Bangladesh soil was being used for terrorist activities. We must be trusted, we are not in any way connected with anything bad for India.
China is your largest trading partner, with which you have almost $6-billion bilateral trade. When do you see India surpassing China?
Many of the cheap products coming from China, like toys and electronic equipments, are not needed. From our necessity point of view, China is not that important as India imports raw materials like cotton and food items. The country is flooded with China products. I personally feel trading with India will surpass that with China.
Tata Group had planned a $3-billion investment in Bangladesh, but it did not work out. NTPC’s Khulna project is stuck with some environmental issues. Do you think concerns are still there for Indian investors?
Tata wanted to utilise our gas, and the price they offered, economists said, was not beneficial for Bangladesh. As for the Khulna plant, I don’t know what investors are trying to do. In 2011-12 alone, Indian investment in Bangladesh was about $95 million, through 28 units. In your country also there are stumbling blocks — Tatas were unable to do it in Singur. Indians will get cheaper manpower, electricity in Bangladesh, and duty-free markets across the world. Whatever people say, as far as the political climate is concerned, no investment is unsafe in Bangladesh.
Bangladesh flooded with Chinese products... India to pip China as our largest trade partner: Ghulam Muhammed Quader
Interview with Bangladesh commerce minister
Shine Jacob / New Delhi Oct 04, 2012, 00:32 IST
A year after what was “set to be a historic deal” on Teesta water sharing being derailed by West Bengal Chief Minister Mamata Banerjee, Bangladesh is still hopeful about the deal and improving ties with India. The neighbouring country’s commerce minister, Ghulam Muhammed Quader, speaks to Shine Jacob about the future of the relationship, economically and bilaterally. Edited excerpts:
Last year, during the visit of Prime Minister Manmohan Singh to Bangladesh, a lot of economic and bilateral decisions were taken? Are you satisfied with their implementation?
Many of the bilateral issues were agreed upon and some of them were signed; now the implementation is under process. In certain matters, the agreements are being delayed due to other factors; for example the Teesta treaty where the West Bengal government has some objections. Issues related to enclave situation and people there were also finalised during the Indian prime minister’s visit, but some constitutional amendments need to be done by the Indian government. The present government in India is sincere in implementing whatever they have promised.
Teesta water-sharing treaty saw a lot of last-minute drama, when Mamata Banerjee stood against the increase in water share for Bangladesh from 25,000 cusecs (cubic feet per second) to 50,000 cusecs. With Banerjee’s exit from the UPA coalition, do you see any future of this treaty?
More or less, the situation still remains the same. What we are optimistic about is the treaty, that the Indian government has agreed to, is reasonable and rational. In addition to this, according to the international protocol, the river is flowing from India to Bangladesh, which is also in favour of us. Whatever the hindrance, India is always assuring us that it would be sorted out soon.
The fallout of the Teesta agreement led to the pause of the transit treaty from your side. What is happening with this?
In the transit case, we are agreeable to allow transit to India. From our side, we wanted to have transit to Nepal and Bhutan also. We wanted it to be a win-win situation for both the countries. However, infrastructure in Bangladesh is a concern for us, as road and rail facilities have deteriorated. If Indian trucks are allowed, that can create pressure on our road infrastructure facilities.
How can this problem be solved?
We want India to share the cost of these infrastructure developments, and this is being discussed now. A core committee was formed on this with experts from government and other private stakeholders. It has already submitted the report.
Trade deficit is one of your major concerns. While Bangladesh imports Indian goods worth $5 billion, exports are only around $500 million. How are you going to tackle this?
It is very easy. We are importing a lot of things from India, mainly raw materials for our exports and other essential products. Our concern is to increase the trade volume with India. It has allowed us some big facilities under SAFTA. Almost 99 per cent of the products, except tobacco and alcohol, is duty free. It is like Bangladesh can trade with India in the same way like any other state in this country. In future, we will try to make use of this. Still, there are problems related to para tariffs, non-tariff barriers and regulations on tested items from Bangladesh, which need to be sorted out. Bangladesh and India suffered due to lack of trust. India used to think Bangladesh soil was being used for terrorist activities. We must be trusted, we are not in any way connected with anything bad for India.
China is your largest trading partner, with which you have almost $6-billion bilateral trade. When do you see India surpassing China?
Many of the cheap products coming from China, like toys and electronic equipments, are not needed. From our necessity point of view, China is not that important as India imports raw materials like cotton and food items. The country is flooded with China products. I personally feel trading with India will surpass that with China.
Tata Group had planned a $3-billion investment in Bangladesh, but it did not work out. NTPC’s Khulna project is stuck with some environmental issues. Do you think concerns are still there for Indian investors?
Tata wanted to utilise our gas, and the price they offered, economists said, was not beneficial for Bangladesh. As for the Khulna plant, I don’t know what investors are trying to do. In 2011-12 alone, Indian investment in Bangladesh was about $95 million, through 28 units. In your country also there are stumbling blocks — Tatas were unable to do it in Singur. Indians will get cheaper manpower, electricity in Bangladesh, and duty-free markets across the world. Whatever people say, as far as the political climate is concerned, no investment is unsafe in Bangladesh.
(future ... may be or may be not)..... But now they are flooding your market with their products and your local industry is dying ... And if your minister point out it ... Razakars start to cry
