{"id":120755,"date":"2021-11-30T18:28:59","date_gmt":"2021-12-01T01:28:59","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=120755"},"modified":"2021-11-30T18:28:59","modified_gmt":"2021-12-01T01:28:59","slug":"nepal-and-bangladesh-could-benefit-from-growing-trade-ties","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2021\/11\/30\/nepal-and-bangladesh-could-benefit-from-growing-trade-ties\/","title":{"rendered":"Nepal And Bangladesh Could Benefit From Growing Trade Ties"},"content":{"rendered":"

MD Pathik Hasan<\/em><\/span><\/h2>\n\n\n

Nepal\nand Bangladesh are two of South Asia\u2019s closest friends and peace-loving\nneighbors, their ties made closer by recent high-level state visits. President\nof Bangladesh Abdul Hamid visited Nepal in 2019. Nepal\u2019s President Bidya Devi\nBhandari likewise visited Bangladesh in 2021 as a guest on the birth centenary\nof Father of the Nation Bangabandhu Sheikh Mujibur Rahman.<\/p>\n\n\n\n

Nepal\nrecognized Bangladesh as a sovereign state in 1971 and bilateral relations\nsolidified after Bangladesh established six trade routes with Nepal in 1976.\nRelations were further enriched by the visit of King Birendra of Nepal to Dhaka\nin 1986. The two countries are currently members of several forums, including\nthe United Nations, the WTO, BIMSTEC and SAARC and both Nepal and Bangladesh are\non the way out of the club of LDCs.<\/p>\n\n\n\n

In\n2019, 40,000 Bangladeshi tourists went to Nepal. At present, nearly 4,000-5,000\nNepali students are studying in medical colleges and universities in\nBangladesh. After joining workplaces in Nepal, these doctors are prescribing\nmedicines for Bangladeshi companies. As a result, a good market for Bangladeshi\nmedicines has been created in Nepal and currently eight companies export\nmedicines to Nepal. Unfortunately, lack of the desired SAFTA agreement is\nhurting their trade potential even as the two countries are moving towards a\nbilateral free trade agreement.<\/p>\n\n\n\n

Nepal\nhas a free trade agreement with India. It has also expressed its interest in\nsigning a preferential trade agreement or PTA with Bangladesh to boost\nbilateral trade. Although talks on this started last year, Nepal is frustrated\nthat the agreement has not been finalized. As Nepal is a close country,\nBangladesh can easily import fruits, herbs and spices. On the other hand,\nBangladesh\u2019s entry into the Nepali market has multidimensional potential as\nNepal currently imports 90 percent of the goods it uses.<\/p>\n\n\n\n

Nepal\nhas a population of 29 million and a GDP of nearly $30 billion. Nepalis are a\nvery fancy nation. As a result, Nepal can be a good market for Bangladesh\u2019s\nelectronics, ceramics, garments, furniture and local clothing brands. The\ncompletion of the desired PTA will open new horizons in trade between the two\ncountries; Bhutan-Bangladesh trade has doubled since the signing of the PTA\nbetween them. The Kathmandu Post quoted the country’s foreign ministry as\nsaying that Nepal had already sent a draft PTA to Bangladesh and now it is\nwaiting for a response.<\/p>\n\n\n\n

Bangladesh\ncan export its apparels and fertilizers to Nepal. Some Nepali media outlets had\nreported that 52,000 metric tons of urea was imported from Bangladesh in July. Nepal\nand Bangladesh are a short distance apart. The Siliguri corridor \u2013 also called\nthe Indian Chicken Neck – in the northern part of India\u2019s West Bengal state\nstands geographically between Bangladesh and Nepal.  <\/p>\n\n\n\n

The\nNepal-Bangladesh ties have a lot of potentials. Bangladesh\u2019s economy is booming\nday by day, and analysts feel It is going to be a South Asian superstar.\nCurrent rulers Bangladesh Awami league are trying to carry out massive\nindustrialization to make it a high-income country by 2041.<\/p>\n\n\n\n

Nepal\nis also a prosperous country. Its people are peace-loving and hard-working,\njust like those in Bangladesh. Bangladesh and Nepal can connect to raise the\nliving standards of their people.<\/p>\n\n\n\n

Nepal\nis a huge source of hydroelectricity, and the Himalayan nation can supply it to\nBangladesh to help the latter meet its demands. Bangladesh needs more\nelectricity to run its factories. Nepal can thus play a significant role to\nboost Bangladesh’s economic strength. Nepal will also benefit as its\nelectricity market would grow.<\/p>\n\n\n\n

Power\nimports could open up another horizon in relations between the two countries.\nNepal has the capacity to export about 42,000 MW of hydropower. Bangladesh,\nwhich is on the path of rapid industrialization, can import electricity from\nNepal, and India too seems to be positive on this.<\/p>\n\n\n\n

For\nthis, the power transmission line has to be installed and Bangladesh, Nepal and\nIndia have to work jointly. India also stands to benefit, and as the South\nAsian big brother, it should play a positive role to boost Nepal-Bangladesh\nties and trade. A trilateral trade scheme can be initiated alongside the border\nmarkets. Bangladesh will be able to export its \u2018surplus\u2019 electricity to Nepal\nduring the dry season. <\/p>\n\n\n\n

In\nJune 2021, Bangladesh\u2019s state minister for energy Nasrul Hamid announced the\ncountry will import around 700 megawatts (MW) of hydropower from Nepal to meet\nits future electricity demand. Bangladesh Foreign Minister A K Abdul Momen said\na deal was in the final stages with Nepal and India allowing his country to\nimport hydropower from the Himalayan state.  <\/p>\n\n\n\n

According\nto Bangladeshi Media, Bangladesh signed a Memorandum of Understanding (MoU)\nwith Nepal in 2018 to oversee investment, development and trade in hydro-electricity\nbetween the two countries. Under this arrangement, Bangladesh will import up to\n9,000 Megawatt of hydropower from Nepal by 2040. Bangladesh is also keen to\ninvest in Nepal’s hydropower sector.<\/p>\n\n\n\n

Vistas\nof cooperation <\/strong><\/p>\n\n\n\n

Recently\nsome Nepalese media reports said Bangladesh wanted to export its apparel and\nfertilizer to Nepal. A total of 52 thousand metric tonnes of urea imported from\nBangladesh arrived in Nepal in July.<\/p>\n\n\n\n

Bangladeshi\nconglomerate Walton Group, which deals in electronics, telecommunication,\nautomobiles and computers, is active in Nepal. International NGO Brac and other\nBangladeshi NGOs can play definitive roles to develop the mass education and\nhealth sectors in Nepal.<\/p>\n\n\n\n

Bangladesh\nsigned a Preferential Trade Agreement with Bhutan on December 06, 2020. A\nPreferential Trade Agreement with Nepal is also at the final stage and is\nlikely to be signed soon. This would enable duty-free access to products of\nboth countries.<\/p>\n\n\n\n

As\nan addition to the Protocol of the Nepal-Bangladesh Transit Agreement signed in\n1976, a letter of exchange has been inked between the two countries to include\nthe Rohanpur-Singhabad Rail Link between India and Bangladesh. Nepal is also\ninterested in using Chattogram, Mongla and Paira Seaports because it is a\nlandlocked country. Bangladesh has agreed to work on the modalities for this\nduring the visit of Nepali President Bidhya Devi Bhandari in March.<\/p>\n\n\n\n

Nepal\nhas also expressed its interest to use the inland waterways of Bangladesh.\nBesides, Nepal is also keen to use the Saidpur Airport in Bangladesh’s\nNilphamari district for direct flights to Biratnagar (the capital of Nepal\u2019s\nprovince no.1). Bangladesh is open to it.<\/p>\n\n\n\n

Tourism,\nCovid-19, counter-terrorism, microfinance, exchange of training expertise and\neducation are some sectors in which Bangladesh and Nepal can collaborate.\nBangladesh faces a refugee problem after the massive influx of Rohingya\nrefugees into the country in 2017. Now Bangladesh wants to repatriate them to\nMyanmar. Nepal should support Bangladesh at all international fora to\nrepatriate them peacefully. Such a gesture will not go unnoticed in Dhaka.<\/p>\n\n\n\n

The\nshortest distance between Nepal and Bangladesh is only 22 kilometers, and the\nroad distance from Banglabandha in Bangladesh to Kakarvita in Nepal is just 39\nkm. In this connection, railways could offer much-needed connectivity. Nepal\nwants to join the rail link from Rohanpur in Chapainawabganj, Bangladesh to\nSingabad in India. Kathmandu\u2019s distance from this railway will be only 216 km.\nOn the other hand, China is building a railway from Lhasa in Tibet to Khasa, a\nborder town in Nepal, and Nepal wants to bring that railway to Kathmandu. As a\nresult, if there is effort and desire, Bangladesh can even establish a rail\nlink to China via Kathmandu.<\/p>\n\n\n\n

At\npresent Dhaka is connected to Kathmandu by air and Nepal wants to expand air\nconnectivity to Sylhet and Chittagong. Another option would be linking Syedpur\nin Bangladesh and Bhadrapur airport in Nepal, which would be just a 15 minutes\nflight. For those who want to avoid the hassle of a road transit visa on a\nbusiness or leisure trip, this sky connectivity will be a huge relief. Both the\ngovernments may withdraw international tariffs on this route, in which case\npotentially millions of Bangladeshis could visit Nepal in coming years. Bangladesh\ncould also help with the development of cricket in Nepal.<\/p>\n\n\n\n

Many\npeople think sending goods to Nepal is difficult but the task has been made\nmuch easier by the establishment of the Nepali warehouse at Banglabandha port.\nBangladeshi products thus have great potential in Nepal and the private sector\nshould be encouraged to join. In the end, again, the cooperation between the\ntwo countries will be useful in building a peaceful and prosperous South Asia.<\/p>\n","protected":false},"excerpt":{"rendered":"

MD Pathik Hasan Nepal and Bangladesh are two of South Asia\u2019s closest friends and peace-loving neighbors, their ties made closer by recent high-level state visits. President of Bangladesh Abdul Hamid visited Nepal in 2019. Nepal\u2019s President Bidya Devi Bhandari likewise visited Bangladesh in 2021 as a guest on the birth centenary of Father of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[179],"tags":[],"class_list":["post-120755","post","type-post","status-publish","format-standard","hentry","category-md-pathik-hasan"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/120755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=120755"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/120755\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=120755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=120755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=120755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}