Mashiur against fees for transit

[ares]

Nepal and bhutan is never a big market... so getting transit facility over there is not that much necessary for Bangladesh... regarding transit bd and india both will provide same amount of fees.... which will save money for both that specially india spent on transporting goods... as India will transport more goods to NE India or NE india to main land india ... it is better for BD in this case to impose a duty which is win win for both...

N regarding losing competitiveness it does not a matter as bd has low manufacturing and labor cost ... it will be compensated..

If you think you can earn more through transit fees than by direct exports to Nepal and Bhutan then I think you are naive...listen to what your experts are saying..they are not fools.

As of now you do not have much trade with these countries..because your goods are going sea route to India and then to these countries..once you get direct access to them.. your exports to them will multiply..one good thing about the increase in exports is ..it directly increase the income of common man as oppose too transit fees..which will go into govt's coffers.

If you think your cheap labour has given you advantage to you in case of Nepal and Bhutan ..then you should check export to them .. because your cheap labor products becomes non competitive in the face of duties and transit fees you have you pay..while going through India.

 

[CaPtAiN_pLaNeT]

If you think you can earn more through transit fees than by direct exports to Nepal and Bhutan then I think you are naive...listen to what your experts are saying..they are not fools.

As of now you do not have much trade with these countries..because your goods are going sea route to India and then to these countries..once you get direct access to them.. your exports to them will multiply..one good thing about the increase in exports is ..it directly increase the income of common man as oppose too transit fees..which will go into govt's coffers.

If you think your cheap labour has given you advantage to you in case of Nepal and Bhutan ..then you should check export to them .. because your cheap labor products becomes non competitive in the face of duties and transit fees you have you pay..while going through India.

You are naive to recommend such stuff and use the term to listen to what the economists are saying... For your info majority of them are for imposing duty on Indian goods... n this is what national board of revenue imposed on indian government and even finance minister accepted that on the budget...

From the article...

"MUHITH ON TRANSIT

The finance minister in the budget for the current fiscal year had made a provision for collecting fees for transit and transhipment at a rate of Tk 1,000 per tonne for bulk cargo and Tk 10,000 per container.

On Nov 2 last year, finance minister Abul Mal Abdul Muhith had said the government was going to formulate new rules to impose duty on transshipment of goods by India through Bangladesh.

"They'll use our facilities to transport their goods. Our infrastructure will be used and that involves some costs for the government. So we'll have to take something; it may be called fee or anything," he had told journalists after a meeting with the visiting mission chief of IMF at his ministry.

Muhith had said the existing transit rules of the National Board of Revenue (NBR) would be amended and the amount of fees will be re-fixed."

N here we are not talking about a big duty but a percentage of amount that india will save due to transit... n even for this if some market share is lost in Nepal and bhutan it will not be a big deal as bd's biggest market share are in EU, North america, SE Asia and middle east... bd is also exploring south america and africa now...

 

[ares]

Well I am not surprised ..you guys are not able to think in terms of short term losses for long term gains.

 

[CaPtAiN_pLaNeT]

Well I am not surprised ..you guys are not able to think in terms of short term losses for long term gains.

Looking at the long term gain this recommendation of duty has been as asked by many economist as transhipment of india and ne india will be increased couple of fold along with bd will loose some market share in NE india... to compensate that it is necessary to earn some money by imposing duty on indian goods...If bd product is good then bd will make its way to nepal and bhutan also the way it has made its way to US, EU and many other countries...

 

[ares]

Looking at the long term gain this recommendation of duty has been as asked by many economist as transhipment of india and ne india will be increased couple of fold along with bd will loose some market share in NE india... to compensate that it is necessary to earn some money by imposing duty on indian goods...If bd product is good then bd will make its way to nepal and bhutan also the way it has made its way to US, EU and many other countries...

Your product are competitive in US and EU because your competitors use the same sea route as you but in this case your competitor(India) has advantage over you.

However as you say it is much easier for India to just provide you small percentage of money we save to you as fees, as oppose to provide you with any special free transit corridor to these countries..this way we won't loose any niche markets to your goods and also save money.
But if your govt takes this second option .. I will have some serious doubts about its business acumen.

 

[fallstuff]

I think it would rather fairer if we provided you free transit to Bhutan and Nepal and you provide us free transit to North east India..because it is barter deal..

India will not loose anything if we provide you the facilities to use our roads and similarly for Bangladesh.
By involving money in it..you will only complicate things..this is exactly what your economic experts are also recommending.

Plus if we charge you transit for Bangladeshi export to Nepal and Bhutan ..your goods will become less competitive and loose its markets.

On the top of it Bangladeshi transit fee make transit through it uneconomical..we can always use other routes..this not the option available to Bangladesh.

So question is are you smart enough to understand the concept of " You scratch my back, I'll scratch yours"??

It is not as simple as you think.

1) How far the trucks are going to travel ?

2) What are the actual cost savings for BD vs India

3) Sending trucks through insurgency infested area.

4) What is the expected value to be gained in terms of more export in next five years.

5) What is the expected value of lost business to NE after providing transit in next 5 years. ( the business class is against this deal)

6) How much of a threat this actually creates. ( SA is not EU).

7) The China factor.

If somebody can think about more issues please post them.


Finally this is between Bhutan/Nepal and India. If India doesn't allow their trucks to pick up goods from BD border, they can lodge a complain with UN or WTO or whoever. This is really not our concern.

 

[eastwatch]

Bangladeshi people should not curse Mashiur Rahman, the economic advisor to the PM for suggesting not to demand fees for the transit to Tripura. India is a very poor country. A transit fee will be too much of a burden to them.

You see, India exports even its food to BD even though their people are hungry. We pay them in dollar which they use to buy raw materials. We should show compassion to the poor India, and support their development in the NE.

 

[Yeti]

Bangladeshi people should not curse Mashiur Rahman, the economic advisor to the PM for suggesting not to demand fees for the transit to Tripura. India is a very poor country. A transit fee will be too much of a burden to them.

You see, India exports even its food to BD even though their people are hungry. We pay them in dollar which they use to buy raw materials. We should show compassion to the poor India, and support their development in the NE.

Perhaps you should worry more about the poverty in BD and the cyclones that have hit you and will hit you in the future

 

[idune]

Danger from giving transit to india

 

[guest11]

Perhaps you should worry more about the poverty in BD and the cyclones that have hit you and will hit you in the future

Don't you just love Bangladeshi goverment. I guess our Bangladeshi PDF members are right when they call Awami League as Bhartiya Dalal. From today itself I am a huge fan of Sheikh Hasina.

 

[eastwatch]

Perhaps you should worry more about the poverty in BD and the cyclones that have hit you and will hit you in the future

We are a proud nation. We will not ask India to give us anything free. India re3mains physically and mentally a nation of poors and miser people. This nature is reflected in its dealing with other nations.

 

[desioptimist]

We are a proud nation. We will not ask India to give us anything free. India re3mains physically and mentally a nation of poors and miser people. This nature is reflected in its dealing with other nations.

Thanks for realizing that India is poor and needs your help. When you realize that you are poor too, ask for help, we are not going anywhere.
Whether you ask for transit fee or not is your govt's prerogative, we cant demand that.

 

[Yeti]

We are a proud nation. We will not ask India to give us anything free. India re3mains physically and mentally a nation of poors and miser people. This nature is reflected in its dealing with other nations.

Proud then why India provided you with aid back in 2007 when the cyclone hit you? why you take loans from India? you remain a nation of beggers and will continue with your proud begging

 

[tallboy123]

Nepal and bhutan is never a big market... so getting transit facility over there is not that much necessary for Bangladesh... regarding transit bd and india both will provide same amount of fees.... which will save money for both that specially india spent on transporting goods... as India will transport more goods to NE India or NE india to main land india ... it is better for BD in this case to impose a duty which is win win for both...

N regarding losing competitiveness it does not a matter as bd has low manufacturing and labor cost ... it will be compensated..

It was u right who was complaining about india not paying tranist fees right???
wat made u change ur opinion???

 

[Spring Onion]

Proud then why India provided you with aid back in 2007 when the cyclone hit you? why you take loans from India? you remain a nation of beggers and will continue with your proud begging

as if India never took international aid during natural calamities

that is a very weak argument you came with.