India and Bangladesh have decided to start talks for a free trade agreement (FTA) early. The decision follows a meeting between commerce and industry minister Piyush Goyal and his Bangladeshi counterpart Tipu Munshi here on Thursday.
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Both the ministers also discussed the feasibility of bilateral trade in rupee, removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonisation and mutual recognition of standards and trade infrastructure to further boost bilateral commerce.
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A joint feasibility study on the Comprehensive Economic Partnership Agreement “confirmed” the FTA would substantially enhance trade and commercial partnership between the two countries, according to a commerce ministry statement. India’s exports to Bangladesh, the fifth-largest destination, dropped 6.5% until October this fiscal to $7.3 billion, while its imports from the neighbour rose 11.7% to $1.2 billion.