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April 19, 2011 |  | By Nidhi Bhardwaj | ||
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New Delhi has submitted a detailed transit corridor proposal to Dhaka. Building on the excellent security and intelligence coordination over the last year, which resulted in the detention and arrest of ULFA’s senior militant leadership, the significant arrest of RK Meghen, alias, Sana Yaima, the elusive militant leader of the insurgent group, United National Liberation Front, New Delhi and Dhaka have committed themselves to developing a good economic and business partnership. India and Bangladesh are discussing the possibility of using Chittagong and Mongla road, rail and port facilities for the transportation of goods to third-party countries and import of goods from the southeastern region. India has sought transit facilities to third-party countries, as well as its isolated northeastern states, through 15 road and railway routes and ports in Bangladesh. Bangladeshi media quoting un-named foreign ministry officials has reported that India has sought access to the territory of Bangladesh and its sea ports for the northeastern regions of India. New Delhi has reportedly invited the Bangladesh government to sign a protocol, for a period of seven years, for the purpose of transit corridor and use of two ports. The proposal expressed India's willingness to export and import goods to and from third-party countries through ports in Chittagong and Mongla, and use warehouse facilities under exempted customs duties. The proposal states that “The movement of cargo under the protocol shall be exempted from customs duties and other charges, except reasonable charges for transportation and such other charges as are commensurate with the cost of services rendered in respect of such movement. Transit fees, if any, to be levied will be decided by mutual consent of both governments." According to the proposal, Bangladesh's customs authority cannot examine any of India's containerised cargo if it is sealed, which is being described as a ‘one-time-lock’. However, in respect of non-containerised cargo, customs authorities may make a selective percentage examination of the goods to check if they comply with customs laws. Bangladeshi parties such as Bangladesh National Party (BNP) and Jaamat-e-Islami (JEI) are of the opinion that if the transit routes are made available to India, then that would make Bangladesh a “client state” of India. The entire idea behind the transit corridor is to join India, Nepal, Bhutan and Bangladesh to the Asian Highway, a project approved by the Asian Development Bank. The corridor would pass through Myanmar but would directly enter China. Fundamentalist political groups and some economists like Dr Moshiur Rahman consider the Indian transit route through Bangladesh a big issue. New Delhi should take note of the fact that there are no such anxieties as far as the proposed roadway from China’s Yunan Province through Myanmar to Chittagong port is concerned. This demonstrates a significant political opinion in Bangladesh which support close ties with China in order to reduce Indian influence in the region. China is the biggest trading partner of Bangladesh, while India is not even in the top eight. There is bound to be pressure from the Chinese side against this proposed route. Bangladeshi groups opposing the transit arrangement cite two issues. The first is the issue of transit, the second pertains to the corridor facility. Objections are greater against corridors than transit, as the latter involves other countries as well. Bangladesh signed transit treaties with Nepal in 1976 and with Bhutan in 1980. But Bangladesh does not have any treaty with India regarding transit or corridor. Due to the absence of any treaty, trade between the two countries is presently carried out by transshipment or by transporting goods from the cargo of one country to the cargo of another. For Bangladesh to have land connectivity with Nepal and Bhutan, the route will inevitably have to pass through India and would require permission from the Indian Government. Bangladesh is in talks with Nepal and Bhutan for receiving power supply from the two countries. If these talks are to come through, the power transmissions would also have to be through the Indian Territory. The geographic location of Bangaldesh’s deep-sea ports may greatly influence trade expansion and Bangladesh has an immense opportunity to become a regional transport hub, not only for SAARC countries, but also for China and other Asian countries in the future. A Bangladesh Institute of Development Studies (BIDS) study shows Bangladesh could have earned $430 million from road, rail, and port services in FY 2006, if transit to India, Nepal and Burma is allowed. This transit corridor is very important for India as it is for Bangladesh. For India, it provides a better connectivity to the North-Eastern states. The region has long been inflicted with a range of insurgencies and militant movements. India will be able to deal with its internal security scenario more effectively once the transit corridors are functional. The Chinese and Pakistani sponsorship of insurgencies in north-east India is well known. They have been supplying arms and ammunition to insurgent groups in the region. Former BNP Foreign Minister Morshed Khan had once said “if India encircles Bangladesh, Bangladesh also encircles India”, implying that Bangladesh could fan simmering insurgency movements by simply being a transit for Chinese and Pakistani agent saboteurs. Nidhi Bhardwaj is a strategic affairs writer affiliated to Three Headed Lion Research & Information Services (The views expressed in the article are that of the author and do not represent the views of the editorial committee or the centre for land warfare studies). | ||||||||
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Nidhi Bhardwaj |
