Each country to set up two markets once a week
The Cabinet on Monday approved the Memorandum of Understanding and Mode of Operation that Dhaka is expected to sign with New Delhi for setting up border markets.
The commerce ministry placed the proposal for the operation of four markets initially on the frontier at the weekly Cabinet meeting in the secretariat with Prime Minister Sheikh Hasina in the chair.
Bangladesh and India are expected to sign the agreements later this month when commerce minister Muhammad Faruk Khan goes to New Delhi on October 20 on a three-day tour, said an official.
In the first phase Bangladesh will set up two markets, one at Baliamari in Kurigram and another at Laughar in Sunamganj. India will set up two markets in Western Garo Hill and Balati in Meghalaya.
Briefing reporters after the Cabinet meeting, PM’s press secretary Abul Kalam Azad said that the border markets would sit once a week and either party could close the operation of its market/s by giving a 30-day notice.
He said that the decision to set up the markets was taken in line with an agreement by the governments of the two countries during Hasina’s visit to India in January.
Hasina at Monday’s meeting asked authorities concerned to keep open the scope for discussion on fixing the number of traders and the value of tradable items to be allowed in the markets.
As per the draft agreements, items like farm products, handicrafts, horticultural produce, fresh and dry fish, wooden and cane furniture, utensils, farming tools and home-made clothing such as lungi and gamchha would be eligible for border trade.
According to the agreement’s draft, an individual will not be able to trade goods worth above $50 at the bazaar in both Bangladeshi and Indian currencies. Agricultural and home-made items produced within 10 kilometres of the border will be allowed to traded in the bazaars, which will have to be set up within 75 metres of the frontier, according to the BSS.
The officials earlier this week said the two countries finalised the modus operandi of the border markets after months of talks and New Delhi agreed not to impose local tax on trading on the borders.
According to the negotiated draft of the proposed agreement, trading at the border markets will not be taxed or levied or fall under the foreign trade policies and laws of the two countries as they will initially sit only once a week.
Several clauses were incorporated in the draft agreement in an effort to keep smugglers away from the facilities and prevent money laundering, adds BSS.
