Bangladesh, India sign trade deals (Roundup)

Feb 9, 2009, 10:00 GMT

   Dhaka - Bangladesh and India inked two trade deals Monday to further strengthen economic ties between the two South Asian neighbours, officials said.

   Indian External Affairs Minister Pranab Mukherjee, who was on a daylong visit in Dhaka, signed the Bangladesh India Trade Agreement and the Bilateral Investment Promotion and Protection Agreement after official talks with his Bangladesh counterpart Dipu Moni

   Commerce Minister Faruk Khan and Industries Minister Dilip Barua signed the two deals on Bangladesh's behalf.

   The deals, approved last week by the Bangladesh cabinet, would help the two neighbours bridge the existing huge trade imbalance in favour of India and encourage fresh investment in both countries, an official said.

   Once the agreement comes into being, India and Bangladesh will be allowed to transport their goods using their water, rail and road routes for transportation of goods. India has been enjoying limited transit facilities only on water routes through Bangladesh.

But New Delhi has long been pressing Dhaka to allow transportation of Indian goods to its isolated seven states in north-east India through Bangladesh territory.

   The agreement on mutual investment promotion and protection will give most-favoured-nation status to each other.

Earlier in the day, Pranab Mukherjee arrived in Dhaka for talks with top Bangladeshi officials.

   'We will work for further improvement of bilateral relations and find new areas of cooperation,' Pranab said on his arrival at the Zia International Airport.

   Pranab was also scheduled to hold meetings with Bangladesh's Prime Minister Sheikh Hasina Wazed.

   'I hope to cover in my interaction the entire gamut of our relations including security, connectivity, trade and investment and other important areas,' the Indian minister said.

   This is the first visit by an Indian minister after Bangladesh returned to democratic rule following December elections, ending two years under a military backed government. In the elections, Hasina's Awami League-led alliance won a sweeping victory.

   Pranab also congratulated the Bangladeshi people for helping to achieve a smooth transition to democracy.

   'Allow me at the outset to convey warm greetings and congratulations to the people of Bangladesh for the successful conduct of a free, fair and peaceful election,' he said.