Trade Scenario Between Bangladesh and Nepal

Trade Scenario Between Bangladesh and Nepal

Bilateral trade between Bangladesh and Nepal began in 1976 under the Trade and Payment Agreement, and the Transit Agreement along with a protocol to the Transit Agreement. The Agreements are automatically renewed for every three years. Although about 3 decades have passed, bilateral trade between the two countries has not grown much and the volume of trade has remained significantly low. Total trade volume in fiscal year 2012-13 was US$ 62.09 million.

The Fourth meeting of Nepal-Bangladesh Joint Working Group (GWG) was held on 22-23 October 2019.  In that meeting Nepal felt great importance to its close bilateral relationship with Bangladesh and wants to take it to new heights by enhancing trade, transit, connectivity and investment. The meeting highlighted the enormous potentials in trade, tourism, multimodal connectivity, agriculture, hydropower etc. An MOU on agreements and operation modalities for carriage of transit cargo, agreement on regulation of motor vehicles passenger traffic (Dhaka-Kathmandu Bus Services) and MOUs related to food safety, agriculture, duty free and preferential product access to each other’s market, visa procedure, investment promotion and transit facilitation were also discussed in the meeting. Bangladesh has been maintaining an excellent bilateral trade relation with Nepal. Bangladesh and Nepal both are signatories to SAFTA. Efforts are underway to strengthen trade relations between the two countries by exchanging concessional list of tariff items under SAFTA. Bangladesh’s imports and exports figures with Nepal are shown below.

Major exports from Bangladesh to Nepal:

Jute, Pharmaceuticals, Electric accumulators, woven garments, plastic goods, knitwear, readymade garments, paper, beverages, Cotton waste, cotton knitted fabrics, Sugar confectionery and other manufactured goods etc.

Major Imports into Bangladesh from Nepal:

Vegetable products (lentils), prepared foodstuffs, animal food, mineral products, chemical or allied industrial products etc.

Export and Import Statistics Between Bangladesh and Nepal ( Value in milliom US$)

Source: EPB/ Bangladesh Bank

Top 20 Exported Item in Nepal for the year 2020-2021:    

                                                                                                       Total Export Amount: 68,659,904.70 USD