DHAKA, Oct 20: Shrugging off sharp differences over a number of trade issues, officials of Bangladesh and India on Monday “cautiously” started three-day talks on the proposed bilateral free trade agreement (FTA), official sources hinted.

The two sides even conceded ad hoc solution to some trade-related issues since those needed to be immediately addressed despite their complicated nature that required longer time, an official of Bangladesh side admitted.

The Indian side put forward a proposal for allowing testing of Bangladeshi cement in Dhaka as a stopgap arrangement until reaching a mutually acceptable standard. Bangladesh side, on the other hand, assured the Indians that the issue of ban on import of Indian yarn through land ports and also restriction on Indian sugar would be looked into by the next year.

On the first day, the officials of the two countries discussed “non-tariff and para-tariff barriers” to trade, mostly faced by the Bangladeshi exporters while exporting goods to the Indian market — a contention that might ultimately set the tone of the entire talks.

While the Bangladesh side came up with demand for removal of non-tariff barriers citing many cases including exports of cement and battery, the Indians raised the two issues involving their exports of yarn and sugar, meeting sources said.

Joint secretary of the Ministry of Commerce Elias Ahmed led the 11-member Bangladesh side while joint secretary of India’s trade ministry S Ramasundaram led his team. Both the team leaders described that the talks were held in a friendly and cordial manner that made a “positive direction” towards signing the FTA after further discussion.

“I can only say that the meeting was held with a satisfactory note and we’re to make more development in the next two days,” Elias Ahmed told newsmen after the meeting. About non-tariff barriers, he said the development is “positive” although he did not elaborate it.

Asked about the critical issues, he nodded that the problems with cement and battery exports to India were tabled while the Indians too came up with the demand for relaxing their exports of yarn and sugar to the Bangladesh.