Trucks from India and Nepal can go up to 200 metres into Bangladesh near Banglabandh-Phulbari land customs station.

The agreements were signed in the Indian commerce and industry minister, Anand Sharma and the Bangladesh commerce minister, Muhammad Faruk Khan. Khan is leading a strong official and business delegation to India.

The Joint Communique was signed during the visit of the Bangladesh Prime Minister, Sheikh Hasina to India in January, 2010.

Responding to the Bangladesh's concerns of food security, India agreed to supply 300,000 tonne of par-boiled rice and 200,000 tonne of wheat, despite its ongoing ban export ban on these commodities.

On the Bangladesh side the two border haats (trading centres) will be set up in Sunamganj and Kurigram districts and India will set up corresponding border haats in the bordering state of Meghalaya. Border haats will be set up within 5 km of the international border.

Trading will be held once a week and an individual will not be able to trade above the value of $ 50 at border haats. The trading will be duty free and will be done in the currencies of two nations or in barter mode. Agricultural products, minor forest products excluding timber, homemade items, wooden furniture, cane and bamboo products, handloom and handicraft items produced locally within the radius of 10 km of border haats will be traded.

A committee comprising of government officials and representatives of border guards of both sides would oversee the operation of the border haats.

The Bangladesh commerce minister said : “Initially we have planned two border haats each on the either side. The number may go up to 12 in the near future.”

He said that India alone cannot grow in this global village. If its neighbours do not develop it cannot feel comfortable. Trade and commerce was the only means to uplift the common man in the region and the proposed border trade will benefit the remote northeastern parts of India and as well as Bangladesh, he said.

The Indian commerce and industry minister, Anand Sharma extended an invitation to the Bangladesh minister to visit Meghalaya to jointly inaugurate the border haats along with the Chief Minister of Meghalaya on a mutually convenient date.

Sharma said that out of the quota of duty free access of 8 million pieces of textiles from Bangladesh to India, around 1.7 million pieces could be exported for the last quarter ending December 2010. A fresh quota of 8 million pieces of textiles would be available from January 2011. It was further agreed that the pending letters of credit (LoC) contracted before the imposition of ban on cotton exports would be honoured and India would be able to export cotton to Bangladesh. India's assistance to the Bangladesh Standards and Testing Institution through the Bureau of Indian Standards was appreciated.

Sharma said that both sides have recently visited several land customs stations to review state of infrastructure and that India was currently constructing seven integrated check posts and eight land custom stations under a $ 125 million ASIDE scheme. The two sides were also in discussion to construct the bride across Feni to begin trade between Sabroom and Ramgarh. He also emphasised the need to integrate the North East and Bangladesh by encouraging investment flows and joint ventures as well as opening the Chittagong and Mongla ports.

In 2009-10 India's exports to Bangladesh was $ 2,430.89 million while its imports from Bangladesh was only $ 254.48 million. In this context Bangladesh has urged India to rectify this imbalance in bilateral trade by rendering more market access and removing non-tariff and para tariff barriers. The flow of foreign direct investment (FDI) from India to Bangladesh up to June 2010 was $ 494.69 million. Bangladesh has begun investing in India with its Pran group of companies in the lead.