The government has decided to extend a commodity trading deal with Bhutan for another five years. But the service sector is not going to be included.
An agreement will be signed in this regard tomorrow between two nations, said officials.
Commerce Minister Tofail Ahmed and Bhutan’s Economic Affairs Minister Norbu Wangchuk will ink the contract on behalf of their respective sides at the Prime Minister’s Office in Dhaka.
Commerce ministry officials said the trade agreement with Bhutan was first signed in 1980 and continued till 2000.
Then it was renewed in 2003 and again in 2009 when Prime Minister Sheikh Hasina visited to the neighbouring country. To extend the deal this time commerce ministry officials have talked to Bangladeshi businessmen before finalising the contract matters.
The ministry wanted to incorporate service sector but the Bhutan authorities did not agree with that, said additional commerce secretary Manoj Kumar Roy. The service sector includes tourism, ICT and healthcare.
Apex trade body FBCCI adviser Manzur Ahmed described the exclusion of service sector in the contract as “failure of trade diplomacy.”
He urged the government to sign a separate contract for trading of services if Bhutan agrees.
Earlier, Bhutan granted duty-free market access to 90 Bangladeshi products in line with the agreement.
On the other hand, Bangladesh also granted duty-free market access to 18 Bhutanese products.
A senior commerce ministry official said the proposed changes in the agreement would help boost trade between the two countries. He said the two-way trade is still very nominal which is largely tilted towards Bhutan.
In fiscal year 2013-14, Bangladesh exported goods worth $1.91m to Bhutan while its import from that country was worth $22.5m.
Bangladesh mainly exports fruit juice, garments, melamine products, pharmaceuticals and cosmetics to Bhutan while it imports fruits, construction materials, raw materials of cement and spices.