Aug 22, 2011

An Indian, “July,” in Dhaka

            Indo Bangladesh relations remained at an all time high in July. The Indian Congress Party leader Sonia Gandhi received, "Bangladesh Freedom Honour" on behalf of former Prime Minister late Ms Indira Gandhi from President Zillur Rahman. Indira Gandhi is honoured for her role in Bangladesh’s war for freedom from Pakistan in 1971 and is the only foreign leader to receive this award plated in 24 Carat Gold. Indian Prime Minister Dr Manmohan Singh will be visiting Bangladesh on 6-7 September 2011 at the invitation of Prime Minister Sheikh Hasina. The External Affairs Minister, the Home Minister and the Commerce Minister of the country were there in Bangladesh during July.

            During the External Affairs Minister Mr S M Krishna’s visit two agreements were signed - exchange of instruments of ratification in respect of the Bilateral Investment Promotion and Protection Agreement (BIPPA) and SOP (Standard Operating Procedure) for entry of trucks from Bhutan into territories of the two countries near the border. Most significantly Mr Krishna also met the opposition leader Begum Khaleda Zia. Khaleda Zia told the Indian foreign minister that all agreements between their two nations should be made public to improve mutual trust.

                The visit of Mr S M Krishna to Dhaka came at a critical time in relations between the two countries after some adverse remarks by the Indian Prime Minister on internal situation in Bangladesh were aired in the media. This had put the Indian side in an embarrassing situation and thus there was some concern that there would be protests during the visit of Mr Krishna. But either due to ongoing strife in the country over 15^th Constitutional amendment or matured handling of the issue by the Bangladesh government a major spat was avoided.

            This led to a positive atmosphere with signing of important agreements such as promotion and protection of investments which will encourage Indian businessmen to invest in the country as it protects investments from nationalization arbitrarily by the Bangladesh government. There are other issues such as killing of Bangladeshi civilians by Indian BSF and an interim agreement on water sharing of common rivers Teesta and Feni which may take some time to resolve but should not be beyond the scope of negotiations given the positive atmosphere.

In fact on the border management front an agreement was reached to strengthen border security and combat smuggling of illegal drugs and weapons and trafficking of women and children. Director General of Border Guard Bangladesh (BGB) Maj Gen Anwar Hussain and DG of Indian Border Security Force (BSF) Raman Srivastava signed the Border Management Coordinated Plan after conclusion of official talks between Home Minister Shahara Khatun and her Indian counterpart Palaniappan Chidambaram.

            The Indo Bangladesh comprehensive border management agreement should when implemented go a long way in resolving one of the most vexatious issues between the two countries that of killings on the border. The Indian Border Security Force has been accused of shooting innocents. This issue has a major negative effect on Bangladeshi approach towards India and in many ways is the most critical challenge for the relationship given the human dimension. While the Border Security Force has attempted many tactics in the past including use of non lethal guns, deaths continue though these have been reduced in number. The border while being fenced in almost 80 percent of the part is however open where the terrain is not permitting fencing and thus is exploited by people runners and cattle smugglers to advantage.

            The Indian Union Minister of Commerce, Industry and Textiles, Shri Anand Sharma jointly inaugurated Border Haat at Kalaichar, West Garo Hill District in Meghalaya with his Bangladesh counterpart Mr. Muhammad Faruk Khan. Speaking on the occasion Shri Sharma said “The Haats would focus on importance of restoration of economic and commercial ties between the people living on either side of our Borders.” He also announced that the second Border Haat proposed at Balat on Indian side and Lauwaghar on Bangladesh side will also be inaugurated shortly. “It is estimated that bilateral trade worth 20 million US $ will take place annually from the Border Haats” he added.

            The commodities sold in the designated Border Haats are exempted from the payment of customs duties. Commodities are allowed to be exchanged in the designated Border Haats in local currency and/or barter basis. Estimated value of such purchases shall not be more than respective local currency equivalent of US $ 50 for any particular day. Residents of the area within five km radius from the location of Border Haat will be allowed to sell and buy products in the Border Haats. Vendors and vendees in the Border Haats will carry photo identity cards.

            In addition to the Border Haats, both sides are working on several projects to improve trade infrastructure and connectivity. Border Management Department of Ministry of Home Affairs in India is developing 7 Integrated Check Posts (ICPs) on India – Bangladesh Border viz; Petrapole, Agartala, Dawki, Hili, Chandrabangha, Sutarkhandi and Kawarpuchiah. Further, India is also developing infrastructure at 8 Land Custom Stations along the Indo – Bangladesh border at a cost of Rs.108.19 Crores. The Land Custom Stations are Borosora, Dalu, Ghasupara, Mahadipur, Hilli, Phullbari, Srimantpur and Gojadanga. The total projected cost of all the ICPs and LCSs being developed is 125 US $ million.

            India has also welcomed the offer of the Bangladesh Government to the use of Chittagong and Mongla Ports. This will, no doubt provide tremendous benefit for trade and development of Bangladesh as well as the North-East of India. India has already finalised and shared the draft modalities with the Bangladeshi side.

            India is now able to provide Buyers Credit to Bangladesh Government agencies for large project exports, especially in the infrastructure sector such as roads, bridges, railways, power lines, sewerage plants, water treatment plants and housing. The credit spanning over a period of 5-8 years will be provided under National Export Insurance Account (NEIA) through Exim Bank. [Based on MEA India Press Release].

            The fears that Bangladesh has that it would lose some of sovereignty by providing transit to the India, Nepal and other countries in the region has resulted in an impasse in development in that country. The territorial sovereignty fears in a newly independent country where India had a large role to play may have to be got over with in case India wants to benefit from the many routes of regional integration now underway. The other fear is transportation of military stores through the shorter transit route in the case of a war with China are also unfounded and assurance could be built in the Agreement.

            In conclusion it could be said that despite some seemingly offensive remarks by the Indian Prime Minister in a press conference just a few days before the visit of the External Affairs Minister the matured approach shown by the leadership in Bangladesh is encouraging. No reference was made to these remarks even by the BNP the principal opposition party which many feel is not favourably inclined towards India. The ruling party the Awami League did not even mention the same, thereby indicating a genuine willingness to engage India with an open mind. The Indian leadership would have to build upon this goodwill on all fronts and marginalize the extremist sentiment which appears to be very low against India in Dhaka. The September visit of Dr Man Mohan Singh will remain seminal and could prove to be a turning point in case India is willing to make some major compromises in mutual interest.