New Delhi: Bangladesh has implemented several measures that have negatively impacted land border trade with India, even prior to New Delhi’s decision to revoke transshipment facilities that allowed Dhaka to export cargo to third countries through Indian land customs stations. These actions have contributed to the ongoing Bangladesh-India Trade Disruptions.
Last month, the interim government of Bangladesh, led by Chief Adviser Md Yunus, opted to close three land ports with India and suspended operations at another site, citing insufficient infrastructure.
In a controversial move, the interim regime has also stopped imports of yarn from India through land ports, a decision that garment exporters in Bangladesh have described as “suicidal.” This action was taken despite strong opposition from major business chambers in Bangladesh. Experts on Bangladesh affairs have noted that importing yarn via land ports benefits both Indian exporters and Bangladeshi garment manufacturers.
Yarn is a vital component of the garment industry, which is the largest source of export revenue for Dhaka. By halting yarn trade with India, the government appears to be facilitating increased imports from Pakistan, despite Pakistan’s yarn not being as competitively priced as India’s. This decision poses a significant threat to the livelihood of small and medium-sized enterprises in Bangladesh, which rely on these imports as essential inputs for garment production. As both countries seek to enhance logistics by upgrading existing infrastructure and opening new land ports, the unilateral closure of these ports is viewed as a regressive step by economic experts.
On Tuesday, India revoked a crucial transshipment facility that allowed Bangladesh to export goods to third countries via Indian land customs stations, although trade with Bhutan and Nepal will remain unaffected. The ramifications of these decisions continue to exacerbate the Bangladesh-India Trade Disruptions.
