India and Bangladesh agreed Tuesday to join forces against terrorism and to correct trade imbalances tilted heavily in India's favour. The neighbouring countries, which often have a tetchy relationship, also renewed a 1980 bilateral trade pact which was set to expire March 31.
The deals were struck during the ongoing visit of Bangladeshi Prime Minister Khaleda Zia, who held talks with her Indian counterpart Manmohan Singh.
"Both sides agreed to join hands against terrorism and address the issue of trade imbalance with flexibility and pragmatism," Indian foreign ministry spokesman said Navtej Sarna after the meeting.
"Terrorism by its very nature adversely affects both countries and can be fought by collaboration," he added. The two countries also signed a separate agreement to cooperate on preventing drug-trafficking across their porous borders.
Sarna said Zia and Singh also pledged to implement a South Asia Free Trade Agreement between the two nations as early as possible and decided to open a rail link between Sialdah in India and Deopara in Bangladesh. He said the two leaders also discussed disputes over sharing water from common rivers.
KHALEDA ZIA GETS CEREMONIAL WELCOME: Bangladesh Prime Minister Khaleda Zia was given a ceremonial welcome to India Tuesday before meetings with Prime Minister Manmohan Singh and other leaders to discuss trade, terrorism and other issues.
Ahead of the talks, Singh said a strong Bangladesh was in India's interest.
"A strong and prosperous Bangladesh is in the interest of India, South Asia and the Asian region as a whole," Singh told reporters after the reception for Zia at the ornate presidential palace.
"She is an honoured guest and we have intimate ties of friendship with Bangladesh," Singh was quoted as saying by the Press Trust of India (PTI).