Dhaka’s pleas for lifting countervailing duty on import of RMG turn down

The two-day meeting of India-Bangladesh Joint Working Group (JWG) on trade led by Munir Chowdhury, joint secretary of the Bangladesh commerce ministry, and his Indian counterpart Bhupendra Bhalla and their delegations ended yesterday afternoon with both sides agreeing to set up six new border haats along borders with the northeastern Indian states of Meghalaya and Tripura but turned down Dhaka’s pleas for lifting countervailing duty on import of readymade garments.

The two countries agreed to expand the ambit of a bilateral MoU in a week to facilitate haats along borders, said officials concerned. The two countries already have four border haats.

At the JWG meeting, Bangladesh pressed India for the withdrawal of countervailing duty on import of readymade garments from Bangladesh. India, however, contended that removal of the countervailing duty would affect the level-playing field for domestic Indian garment manufacturers.

The countervailing duty of 12.3 percent was imposed in February.

The decision had allowed 46 textile items from Bangladesh to enter Indian markets without any duty.

The Indian manufacturers, however, demanded duty on Bangladesh garments, claiming that the decision was hurting their interests by rendering their products uncompetitive in the market.

The Indian budget for 2013-14 imposed countervailing duty and additional tax of 3 percent on garments imported from Bangladesh.

At the JWG meeting, Bangladesh also raised the issue of India’s clamping anti-dumping duty on jute goods imports, but New Delhi rejected any immediate change in its policy. Currently, the issue of anti-dumping duty is before a tribunal in India and the next hearing will be held after this Eid, added the officials.

India meanwhile requested Bangladesh to drop the extra charges one has to pay for loading and unloading of goods at ports in Bangladesh on Friday, a weekly holiday, on grounds of reciprocity. Indian ports do not charge anything extra on holidays in India. The Bangladesh side said the matter was under consideration.