Nepal and Bangladesh have decided to discuss various issues to enhance trade between the two nations when the commerce secretaries meet on April 20-21 in Dhaka. The duo in particular is likely to discuss issues regarding promotion of bilateral trade, commerce and investment. And Dhaka is expected to push for finalising draft agreements on using Mongla port through the Bangla Bandh dry port for export-import purposes and facilitate movement of carriers unlike earlier when Nepali vehicles could only ply to Bangla Bandh. A bus service linking Kathmandu and Dhaka is also mooted. Nepal’s request for a bridge on the Rupsa river and a 50 per cent slash on port handling charge for its exports have been promptly complied by Dhaka. At this rate of development, the climate for trade between the two countries is no doubt getting conducive.

Although trade barriers are fast falling down, the volume of trade that is being carried out between the two countries is almost insignificant at this stage. Nepal exported goods worth $4 million to Bangladesh in fiscal year 2003-04 while goods worth $0.8 million were imported in the corresponding period. Each year, more favourable climate is being built through bilateral trade accords. Such cordiality normally must prove to be an appetiser for building confidence among trading communities of the two countries. The waiver given to Nepal such as allowing vehicles to ply further to a sea port at Mongla and other concession indicate Dhaka’s willingness to invite Nepal wholeheartedly for trade. While sagging business morale at home might be to blame for the miniscule trade volume conducted since major trade barricades started tumbling down between the two countries in 2002, there are also practical difficulties in travelling the 35-odd km of the Indian corridor to Bangladesh from Kakarvitta in eastern Nepal. While this hurdle remains to be tackled through tripartite agreement, the present concession by Dhaka in itself could be a blessing for Nepal to expand its trade horizon.

The lack of a trade agreement between Dhaka and New Delhi means that Bangladeshi vehicles cannot ply on the Phulbari corridor, or in effect, come to Nepal. That has been quite a deterrent for Bangladeshi traders. At a time when SAFTA and BIMSTEC have been frequently catapulted as means of enhancing regional business transactions more seamlessly, it would not be impractical to find new ways of enhancing such transactions. The fresh talks must hence strengthen the confidence of the business community between the two countries. That will also mean building confidence among the investors in both the countries. The talks must prove to be a stepping stone in accomplishing that mission, besides expanding the trade volume.