Border haats: Exploring new avenue of cooperation
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Trade analysts are opining that the border trades are increasing worldwide for global repositioning of financial structure and changes in trading system. Nowadays, businessmen try to make profit within the shortest possible lead-time and facing less hassle. This is one of the major causes for higher number of bordering trade transactions. As for example, the major border trade transaction countries are Turkey-Russia, US and Mexico and most recently the bordering trade between India and Pakistan is also increasing at a faster rate for changing the mindsets of the leaders of both countries. In last year, Pakistan gave India the Most Favoured Nation (MNF) status mainly to increase the bilateral trade between the two countries. Most probably Bangladesh and India are also trying to increase border trades for many reasons like strengthening bilateral relations and minimising ever-swelling trade gap. Apart from business purposes, the leaders of the both countries agreed for setting up border haats for reduction of incidents of smuggling, curbing trade through informal channels and ultimately facilitating the people of the bordering areas. The balance of trade between the two countries is heavily tilted in favour of India as Bangladesh imports a lot of food items from India. In last July both Bangladesh and India inaugurated two border haats (markets) -- Kalaichar, a bordering area of Meghalaya of India and Baliamari of Kurigram district in Bangladesh. There were several border haats between India and Bangladesh before Independence. The border trade between West Bengal and East Pakistan (now Bangladesh) stopped soon after the independence in 1971. Before the formal functioning of border haats last year, the central banks of both countries authorised some banks to open booths at the border haats for transaction by customers. Currently, the governments of both countries are allowing $50 per person for shopping in the border haats. The haats are mainly selling local agricultural and horticultural products, spices, minor forest products (excluding timber), fresh and dry fish, dairy and poultry products, cottage industry items, wooden furniture, handloom and handicraft items. The number of items might be increased in future to facilitate the customers in the bordering areas. Bangladesh signed four memoranda of understanding on border haats and standard operating procedures of trucks with India. During different dialogues between the leaders of Bangladesh and India, recently, India and Bangladesh have agreed to set up more border haats in the border areas of Tripura, Assam and Meghalaya bordering areas in near future. To minimise the trade gap India has already given zero-duty benefit to Bangladesh on export almost all products including garment items. Only some alcoholic beverage items are left from zero-duty benefit to Bangladesh. A reliable source at the Commerce Ministry of Bangladesh recently said Bangladesh is negotiating with India for allowing cattle trade in the border haats as the cows are coming to Bangladesh from India through informal channels. Because, the Indian export policy does not allow shipment of living animals. But, a significant number of cattle are coming every year in Bangladesh from India through the informal channels. The high-ups of the both countries have already sat several rounds of meeting so that the cattle can be sold in the formal border haats. Data show that India exported goods to Bangladesh worth $2.43 billion in fiscal between 2009-10 and imported goods worth $254.66 million during the same period. It is believed that India has a similar trade balance with Bangladesh in informal channels. If the border haats are not properly regulated and monitored, the incidents of crime might increase by a section of people of both countries. So, leaders of the participating countries should always be alert so that such haats run properly without hampering the peace and security of the region. The border haats will help increase the bilateral trade as customers of both the countries, which are trading in formal channels. Such haats are required for the people of bordering areas because such people are deprived from formal marketing channels as they (the customers) have to travel long way for purchasing basic commodities from markets. Normally, both Bangladesh and India do not allow setting up markets in bordering areas by common people on security ground.The writer is Journalist.
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