DHAKA: On the eve of expiration, India has offered Bangladesh to make the trade agreement between the neighboring countries permanent in stead of time extension. 

Besides, India is keen to include passengers’ transpiration facility with the existing ‘Protocol on Inland Water Transit and Trade (PIWTT)’ under the trade agreement.

Bangladesh, right now, is unwilling to go for permanent agreement, according to sources of Ministry of Foreign Affairs, Ministry of Shipping and ministry of commerce.

The trade agreement between Bangladesh and India as wells as PIWTT will expire on March 31 this year. So, India proposed to make the agreement permanent upgrading the protocol.

India said the agreements are needed to strengthen bilateral and trade relations between the two countries. The country proposed to transport passenger alongside the products through the river protocol.

Earlier, an inter-ministerial meeting was held on renew, change and modify the trade agreements between the two countries and existing river protocol under the deal at the Ministry of Commerce on Sunday.

The passenger transport under water protocol was discussed in the meeting. The meeting ended without making any decisions due to disagreement on permanent agreement with India.

According to the meeting source, the shipping ministry disagreed to make the existing agreement permanent right now. Shipping ministry secretary Shafiq al-Mehdi, opined that the contract might be extended for three years. However, the National Board of Revenue (NBR) in favor of a permanent with some conditions.

The meeting, to be held on March 11, will decide whether the two countries will be going for the permanent or temporary trade agreement. Then it will be communicated to the Government of India through the Ministry of Foreign Affairs.

Senior Secretary at Ministry of Commerce Hedayetullah Al Mamun said Sunday’s meeting did not take any decision. Renewal of existing trade agreements between the two countries as well as the Protocol may be some changes. The next meeting has been called on March 11.

Earlier in 2012, India offers a five-year extension of the term of the protocol. But Bangladesh rejected proposal for extension of routes, increasing ports of call for inland water transport vessels.

The bilateral trade agreement was signed between India and Bangladesh on October 10, 1972 for a period of three years with provision for extension of three years by mutual consent subject to such modifications as agreed upon.

Its validity has been extended from time to time.  An amended Trade Agreement was signed on March 21, 2006 which came into force from April 4, 2006 and presently the agreement is valid till March 31, 2015.

This Agreement provides for the following : (a)  expansion of trade and economic cooperation, (b)   making mutually beneficial arrangement for the use of waterways, railways   and  roadways,  (c)  passage   of   goods   between   two   places  in one country through the territory of the other and (d)   exchange of business and trade delegations and consultation to review the working of the Agreement at least once a year, etc.

BDST: 1623 HRS, MAR 9, 2015