The Bangladesh-India summit held in January, 2010 has generated a great momentum and huge opportunity to strengthen and promote our trade and economic relations for mutual benefit.
In a rapidly modernising and globalising world, connectivity is the most imperative requirement and key to speedy, efficient and sustainable regional and global trade. Bangladesh enjoys a strategic geographical location and can be the bridge between South Asia and South East Asia. It can be the regional hub of transportation for eastern India, North East India, Nepal, Bhutan and ASEAN countries, if it can capitalise its geophysical advantages.
But, it appears that, some widely promoted and publicised, proverbial holier than the Pope, local self customised pandits and policy makers are bent upon confusing and detracting the newly generated dynamics of Bangladesh-India co-operations especially in trade and economic relations between the two countries by linking and lobbying for the passage of goods between two places in India through the territory of Bangladesh with the current agenda on regional connectivity, Transit and Transhipment.
It is also reported in the newspapers that assistance has been sought from Asian Development Bank in carrying out a study on the economic benefits of providing transit facility to India, presumably, to emphasise widely publicised financial allurements to lobby and promote the passage of goods between two places in India through the territory of Bangladesh.
Bangladesh must set things right and uphold the doctrine of third country transit put forward by Honorable Indian Prime Minister, Dr. Manmohan Singh in his opening address given at the inaugural ceremony of the 13th SAARC Summit "that all South Asian countries would provide each other, reciprocally, transit facilities to third countries", which is the cardinal principle and the best interpretation of our international and regional commitments and obligations relating to trade related Transit and Transhipment in the region and beyond.
| WTO Modalities for Regional Connectivity, Transit & TransshipmentGoverning Provisions | 2010 Bangladesh-India Delhi Summit Declaration | Modalities for Regional Connectivity, Transit and Transshipment Options for Bangladesh: |
| GATT Article V on Transit and Transshipment in International Trade is an integral part of WTO framework. Compliance of Transit and Transshipment provisions of GATT Article V is obligatory for both Bangladesh and India subject to flexibilities accorded to LDCs. Transit & Transhipment: In negotiating GATT Article V, the contracting parties considered a covenant known as the Barcelona Convention, regulating the conditions a Member could apply to goods of another Member passing through its territory to a third destination. Disciplines on Restrictions to Freedom of Transit:Traffic in transit shall not be subject to any restrictions unless a Member takes a measure to fulfill public policy objectives, inter alia, those laid down in GATT Articles XX and XXI which shall include the protection and maintenance of transit infrastructure. Members shall ensure that any such measure shall not be more restrictive than necessary. The restriction shall not be maintained if the circumstances or objectives giving rise to its adoption no longer exist or if the changed circumstances or objectives can be addressed in a less restrictive manner. Each Member shall notify the Trade Facilitation Committee on the objective and duration of the restrictions it applies on an [annual] basis. If the restriction is not notified, any Member may bring the restriction in question to the notice of the Trade Facilitation Committee.Regional Transit Agreements: Members shall promote bilateral and regional transit agreements or arrangements with a view to reducing trade barriers and enhance freedom of transit. Members that are contracting parties to regional transit agreements or arrangements shall strive to ensure cooperation and coordination [between] [among] all conxll ensure cooperation with other Members on issues of traffic in transit, including with regard to standardizing transit formalities and documentation requirements, coordinating operations of border crossings and mutual recognition of authorized trader schemes.To this end, Members shall, as far as necessary, meet periodically to discuss and come to an understanding on the fees and charges, formalities, legal requirements and practical operation of transit regimes relating to goods moving in transit between them. | CORRIDORS/CONNECTIVITY: *It was agreed that trucks for movement from Bhutan and Nepal be allowed to enter about 200 meters into Zero Point at Banglabandh at Banglabandh-Phulbari land customs station. Necessary arrangements shall be mutually agreed and put in place by both countries. [Comments: The provision is asymmetric. What about Bangladesh Trucks into India, Bhutan and Nepal]*It was agreed that Ashuganj in Bangladesh and Silghat in India shall be declared ports of call. The IWTT Protocol shall be amended through exchange of letters. A joint team will assess the improvement of infrastructure and the cost for one-time or longer term transportation of ODCs (Over Dimensional Cargo) from Ashuganj. India will make the necessary investment. Both Governments agreed to expedite implementation. Contractors from both countries shall be eligible for the work. *India has sought 'special permission' from Bangladesh under "Protocol on Inland Water Transit and Trade" between Bangladesh and India (PIWTT) for transportation of the some 'over-dimensional consignments' (about 290 tonnes) of power generation equipments from Kolkata port to Pallatana in Tripura state through Bangladesh for setting up a power plant.[Comments: The transport of goods from Ashuganj by road to Akhaura is not covered by the PIWTT. Transportation of goods from one part of India to another part through Bangladesh is beyond the scope and mandate of the PIWTT. The PIWTT does not allow multi-modal transport facilities as it is only meant for transport of goods for transit through waterways and not through the land route. ]*It was agreed that Bangladesh will allow use of Mongla and Chittagong sea ports for movement of goods to and from India through road and rail. Bangladesh also conveyed their intention to give Nepal and Bhutan access to Mongla and Chittagong ports. [Comments: Subject to the restrictions to fulfill public policy objectives, inter alia, those laid down in GATT Articles XX and XXI and also subject to capacity building, development of management, maintenance and protection of transit infrastructure]. *It was agreed that the construction of the proposed Akhaura - Agartala railway link be financed by grant from India. A joint team of the railway authorities of the two countries will identify the alignment for connectivity. *The Prime Ministers agreed that Rohanpur-Singabad broad gauge railway link would be available for transit to Nepal. Bangladesh informed of their intention to convert Radhikapur - Birol railway line into broad gauge and requested for railway transit link to Bhutan as well. | Transit & Transshipment: Bangladesh is required to allow "Transit & Transhipment" of goods to a country through the territory of Bangladesh to a third country and vice versa through its land, air and sea ports subject to the restrictions to fulfill public policy objectives, inter alia, those laid down in GATT Articles XX and XXI which shall also include the capacity building, development of management, maintenance and protection of transit infrastructure.Rights of transit and movement of vehicles for mutual or and international trade through the territory of the second country to a third country, as per GATT Article V, have also to be ensured by India to facilitate India-Bangladesh-Nepal-Bhutan trade.Non commercial cargo: However, as a gesture of good will, with the mutual approval of terms and conditions on case to case basis, Bangladesh may agree to provide passage through its territory non commercial cargo of goods and machineries relating to any public sector project for trade and economic development. ADB study: Without emphasizing widely publicized financial allurements to promote the passage of goods between two places in India through the territory of Bangladesh the TOR of the proposed study by the Asian Development Bank have be specified to cover third country transit and transshipment through land, sea and air routes, infrastructure, capacity & management development and formulation of appropriate regional "Transit & Transshipment" protocol. Movement of vehicles for mutual or and international trade from Bangladesh, Bhutan, India and Nepal have to be allowed for transit to designated port of export through specified routes or enter into Zero Point for transshipment as the case may be. Appropriate protocol with regulations on fees and charges with harmonized and simplified customs procedures have to be operationalized to expedite mutual trade and third country transit facilitating movement of goods and vehicles to and from Bangladesh through the territories of India-Bangladesh-Nepal- Bhutan and beyond.Myanmar India gas pipeline: In order to ensure long term energy security Bangladesh must outsource its energy resources and Myanmar, because of its proximity, is the ideal source of most convenient, safe and continued supply of electricity, oil and gas. Bangladesh therefore should agree, as the first beneficiary at virtually no cost, to allow Myanmar India gas pipeline through its territory to avail the opportunity of obtaining supply of gas at highly cost effective price from Myanmar to meet its growing energy needs in addition to inherent revenue and other associated benefits. Bangladesh-India should also undertake joint ventures to harness energy resources in Myanmar for mutual benefit. |
It is essential for Bangladesh to first examine the governing principles of "Transit and Transhipment in International Trade" as mandated under ARTICLE V of GATT 1994 and take into account the obligations, options and flexibilities available for Bangladesh before accepting or adopting modalities on regional connectivity, transit and transhipment.
The writer is chairman of Fair Trade Advocacy Centre and chairman, BCCI Standing Committee on WTO and RTAs. He can be reached at
e-mail:a.manzur@yahoo.com