With an aim to boost two-way commerce and investment, India and Bangladesh on Thursday agreed to start negotiations for a free trade agreement at the earliest. The decision was taken in a meeting between Commerce and Industry Minister Piyush Goyal and his Bangladeshi counterpart Tipu Munshi.
A joint feasibility study on the agreement, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), has been carried out after the two countries agreed to explore the possibility of negotiating a trade deal, reported PTI.
In an official statement, the commerce ministry said, “The study confirmed that CEPA would provide a solid foundation for substantial enhancement of trade and commercial partnership between the two countries… Both sides agreed to start CEPA discussions at the earliest.” Happened.”
In such an agreement, both countries either substantially reduce or eliminate customs duties on a maximum number of goods traded between them. In addition, they ease norms to promote trade in services and attract investment.
bilateral trade between India and Bangladesh To increase to USD 18.2 billion in 2021-22 (exports of USD 16.2 billion and imports of USD 2 billion) as against USD 10.8 billion in 2020-21.
Furthermore, both sides agreed that the CEPA would create new jobs, raise living standards and provide wider social and economic opportunities in India and Bangladesh.
Bangladesh is India’s largest trading partner in South Asia. India is the second largest trade partner of Bangladesh.
Meanwhile, the two ministers also discussed various issues of mutual interest, including removal of non-tariff barriers and port restrictions, reopening of border haats, harmonization and mutual recognition of standards and procedures of both sides, trade in Indian Rupee disposal is included. Strengthening connectivity and business infrastructure.
(With PTI inputs)
catch ’em all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.