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.
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