New Delhi: India and Bangladesh on Thursday agreed to start negotiations for a free trade agreement (FTA) at an early date with an aim to boost two-way commerce and investments.
The issue came up for discussions during a meeting between Commerce and Industry Minister Piyush Goyal and his Bangladeshi counterpart Tipu Munshi here.
A joint feasibility study on the agreement, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), has been carried out after the two countries agreed to explore the possibility of negotiating a trade pact.
"The study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries... Both sides agreed to starting the CEPA discussions at an early date," the commerce ministry said in a statement.
In such an agreement, two countries either significantly reduce or eliminate customs duties on maximum numbers of goods traded between them. Besides, they ease norms for promoting trade in services and attracting investments.
The bilateral trade between India and Bangladesh increased to $18.2 billion ($16.2 billion exports and $2 billion imports) in 2021-22 as against $10.8 billion in 2020-21.