Leading businesses and experts suggested Sunday the use of entre-pot and re-export facility as an alternative to transit or transshipment to help grow local entrepreneurship.
They expressed the view that the alternative would protect the best interests of the country.
They were speaking at dialogue on Transshipment or Transit for India?, organised jointly by International Chamber of Commerce-Bangladesh (ICC-B) and Daily Star at a city hotel.
A number of participants at the dialogue wanted the government to make public immediately. The 'Core Committee' report on transit and transshipment to remove confusion over the issue.
Commerce minister Muhammed Faruk Khan joined the dialogue as chief guest while prime minister's advisor on international affairs Dr Gowher Rizvi and another advisor on economic affairs Dr Mashiur Rahman attended it as special guests.
President of SAARC Chamber of Commerce and Industry Annisul Huq said re-export will ensure 10 per cent value addition for the local entrepreneurship.
Mr Annis also a former FBCCI president said entre-pot facility will help grow entrepreneurship in the country.
He said: "We can earn at least 5.0 per cent from the entre pot facility and it will also help improve the infrastructure."
Mr Annis said use of the entre-pot and re-export facility might help eliminate the misunderstanding between the two major political parties as both while in government had ratified the entre-pot and re-export facility.
Former commerce secretary Sohel Ahmed Chowdhury narrated the background of the options saying: The option until now has remained ineffective."
Speaking at the function he said transshipment is preferable for the country.
"After 5-7 years, we will be able to provide transit facility efficiently," Mr Sohel added.
The speakers comprising businesses and economists said the recommendations of the government-formed 'Core Committee' should be made public immediately to ensure transparency in the much-talked about the transit issue.
They also underscored the need for making a detailed cost-benefit analysis by internationally reputed consultants prior to providing such facility to the neighbouring country.
They felt that domestic manufacturers would loose their competitive edge if transshipment facility is allowed.
While delivering the welcome address, ICC-B president Mahbubur Rahman said granting of transshipment or transit facility to India is not a simple issue.
"Before providing such facility, a detailed and serious study must be undertaken by internationally reputed professionals, appointed through international bidding," the ICC-B chief said.
He said: "Consignments coming from India are being given preference in crossing to Agartola over export consignments from Bangladesh which is rather worrying for us.
Mr Mahbubur Rahman said the concept of transit should be re-visited and Bangladesh should go for a transshipment agreement to help India gain access to their seven north-eastern states.
He said methods could be developed for seamless movement from one truck to another directly, at the borders.
"If needed Bangladeshi trucks could go into the warehouses in India, and then deliver goods to another Indian point after traversing the territory of Bangladesh," the ICC-B chief added.
He also said the same procedures could be adopted for the railway as well.
He said in the case of transit to India, it is not known who will pay for the development of massive infrastructure involving investments worth billion of dollar and for its regular maintenance when Indian cargoes start rolling on them.
Former FBCCI president Annisul Huq said the government must clear its stance on the transit issue.
He said the core committee report in relation to transit fees and charges should be unveiled immediately.
Mr Annis said Bangladesh might explore the alternative options like entre- pot trade and re-export facilities. This will help grow entrepreneurship, he added.
He said the entire nation is confused over the transit issue.
Former caretaker government advisor Dr AB Mirza Md Azizul Islam said Bangladesh needs to think about its subsidized fuels.
"Bangladesh provides subsidised fuels to the transport and agriculture sector. Who will bear the cost of re-fuelling of Indian lorries from Bangladesh,? he asked.
Mr Mirza said the issue should be addressed immediately.
Mirza wanted to know whether or not the government has any choice relating to transit and transshipment?
Addressing the dialogue another former caretaker government advisor M Hafiz Uddin Khan regretted that there was no focal point to deal the issue.
"We don't know which ministry is the focal point, we're hearing different comment from different ministries on the issue," he added.
Mr Hafiz said government has talked about regional connectivity. Is Bangladesh invited Myanmar or China for taking part in the transit facility?
He said, "Have China and Myanmar shown any interest in transit issue?
Taking part in the dialogue distinguished fellow of the Centre for Policy Dialogue (CPD) Debapriya Bhattacharya said Bangladesh and India are now using the old river transit protocol. There is no need for a modern and comprehensive treaty for this facility.
He, however, said the existing protocol does not cover scanning of goods and dispute resolutions.
Bhattacharya felt that the highest level of transparency needed to be maintained in the case of transit or transshipment as this is an important national issue.
He said four critical factors -- legal framework, regulatory framework, infrastructure and financial charges -- should be taken into consideration while granting transit to India.
Mr Rahmatullah said Bangladesh's road infrastructure right at this moment is not capable of taking the load of heavy duty trucks.
Mr Rahmatullah advocated for granting limited transit facility to India.
Bangladesh tariff commission chairman Md Mozibor Rahman said the core committee has recommended charges and fees taking into cognisance the best practices followed in other countries.
Metropolitan Chamber of Commerce and Industry president Amjad Khan Chowdhury said Bangladesh needs trade expansion and the transit and transshipment will create opportunities for the country.
He said local exporters face many non-tariff and para-tariff barriers while exporting to India.
He said Bangladesh should negotiate with the Indian government in this connection.
Dr Toufiq Ali said: "I don't know what he means when one of the advisors say there is no need for transit agreement."
Dr Jafar Ullah said: "We cannot trust India. It had failed to keep its promises on several occasions earlier."
Prime minister's advisor on international affairs Dr Gowher Rizvi said Bangladesh has studied the world's best practices.
"The committee has also recommended the best one," Mr Rizvi added.
Mr Rizvi said corridor and transit are not the same.
Mashiur Rahman said the transit regime should provide opportunity for adjustments of tariff periodically say after 2-3 years.
He also underscored the need for mobilisation of resources for efficient maintenance of railway and river routes and investment for capacity expansion, particularly of Chittagong and Mongla port.
Commerce minister Faruk Khan said the core committee has submitted its report on the transit issue.
"We're now actively considering it and we will announce it," Faruk added.
He said the government wants regional connectivity.
"We think that there will be a win-win situation in the transit," he added.
"We will protect the interest of Bangladesh. We will not compromise on the issue," the commerce minister asserted.
He also said Bangladesh has prepared a list of 16 new items for duty free access to Indian market.
Source: thefinancialexpress-bd.com
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