The cabinet has approved the draft proposal of the Protocol on Inland Water Transit and Trader agreement (amended) between Bangladesh and India, keeping the provision of automatic renewal.
The approval came from the regular cabinet meeting chaired by Prime Minister Sheikh Hasina on Monday, Cabinet Secretary (Coordination Division) Nazrul Islam told reporters after the meeting.
He said: “According to the proposed amendment, the PIWTT agreement, which expired on March 31 this year, will be extended primarily for the next five years. Both sides can extend it further as per mutual understanding.”
“The new agreement will allow Bangladesh the use of channels for trade with other countries like Nepal and Bhutan.”
The original PIWTT agreement was signed in 1972, and has since been renewed many times.
The trade route between the countries is around 3,000 nautical miles now. But when the PIWTT agreement comes into effect, the direct route will be around 620 nautical miles, which will cut the trade cost by nearly 50%.