A New Age article describes the trade imbalance between Dhaka and New Delhi and makes suggestions for new strategies to the new government in Bangladesh.

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THE trade imbalance that Bangladesh has with India remains a major concern. Officially, Bangladesh's imports from India are worth ten times more than its exports to India in monetary terms. This imbalance is not only because Bangladeshi goods and services cannot compete in the market but also because the trade regime and regulations imposed by the two countries are markedly different, especially when it concerns trade between these two countries. We have always held that increased trade between the two countries would lead to increased interaction between the two peoples and pave the way towards better and stronger integration of the South Asian region. But although Indian commodities, services and investment are aplenty in Bangladesh, so much so that the viability of certain commodities primarily depends on their access to Bangladesh, the treatment accorded to Bangladeshi commodities, services or investment in India is far more restrictive.

While there are signs of development, with India cooperating with Bangladesh on different fronts, trade between the two countries needs to increase in general but more particularly there needs to be a substantial reduction of tariff and non-tariff barriers in India in order to allow Bangladeshi commodities and investment similar opportunities in India. In this respect an agreement on trade and investment, especially one that might lead to increased trade is welcome. The foreign minister, as reported in New Age on Thursday, suggested that Bangladeshi goods should be given more access to the ever-expanding Indian market after her meeting with the Indian high commissioner about the scheduled visit of her Indian counterpart. It was also reported that Dhaka and Delhi would sign two deals and investment during the Indian external affairs minister's visit.

In this context Bangladesh's negotiators would do well to remember that bilateral deals between unequal powers, such as India and Bangladesh, almost always favour the stronger and more powerful party. One should also remember that India has, on several occasions, asked for transit facility to its north-eastern provinces linking that with trade. Being a least developed country, Bangladesh should clearly and strongly point out that an advanced developing country like India has more to do in this case. As far as granting access to goods and investment is concerned, Bangladesh is far ahead and has already conceded far more than India has. It should also be pointed out that the issue of transit, although integral to trade relations, is not similar to reduction of trade barriers and one cannot be linked with the other. As far as transit is concerned, Bangladesh should only agree to provide transit facilities to India if accorded similar privileges through India. But as far as barriers are concerned, trade or investment, India has much to do.

Few governments, if any at all, have had the good sense of remaining transparent to the people regarding such negotiations in the past. Given the sensitivities of the people in Bangladesh and given India's attitude of the past, the government must remain transparent in such bilateral negotiations. Short of consultations with different sections of the conscious citizenry, it would be expected that these issues would be debated at the parliament before final approval and signing of any deals. They offer a great opportunity but the government must tread carefully and judiciously.