India has proposed a new free trade pact to Bangladesh as the current trade concessions are set to lapse under the World Trade Organisation rules. A new trade pact has to be done because Bangladesh’s rising per capita income has elevated it to a Developing Country nation from a Least Developed Nation. The CEPA is a free trade pact under which two countries eliminate basic customs duties on many items. The TelegraphNew Delhi, however, did not sign any such pact during the Narendra Modi-government’s tenure as rightwing elements within the ruling party feel India has been too generous in giving away trade openings, leading to an ever widening trade deficit. India-Bangladesh trade stands at $7.5 billion with India’s exports accounting for $ 6.7 billion and Bangladesh’s exports at $800 million.

Source: The Telegraph September 26, 2018 19:52 UTC