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NEW DELHI: India on Thursday explained the reason behind its decision to withdraw the transhipment facility for Bangladeshi exports and said that it was a response to Dhaka’s actions affecting bilateral trade.
The decision seems to came after Bangladesh’s interim government stopped Indian yarn imports and closed three land ports.
“We stand for a democratic, for an inclusive, and for a prosperous Bangladesh. As far as trade issues are concerned, last week we had made an announcement regarding trans-shipment facility,” External Affairs Ministry spokesperson Randhir Jaiswal said during weekly media briefing when asked about India-Bangladesh trade relations.
“We had taken that measure because of the congestion that we see on our Ports and our Airports. But I would also remind you, please do have a look at the developments that have happened on the Bangladeshi side prior to us announcing these measures,” he added.
India has disallowed transshipment of cargo from Bangladesh to third countries, dealing a blow to Dhaka exporting apparel through air freighters, largely from Delhi.
Global brands such as Zara, which use the route to meet their international need, will have to rework their sourcing strategy. The customs circular, issued Tuesday, said cargo that had already entered India would be allowed to be shipped out. Confirming the development that comes amid the strife in India-Bangladesh ties, MEA said the transshipment used to cause congestion at Indian airports and ports, but added the order won’t hit Dhaka’s exports to Nepal and Bhutan passing through India.
The transhipment arrangement, established in 2020 to enhance trade relations, has been affected by recent developments.
Jaiswal mentioned Prime Minister Narendra Modi’s message to Muhammad Yunus during their initial meeting in Thailand at a BIMSTEC Summit, expressing India’s desire for “positive and constructive” relations with Bangladesh.
Bangladesh suspended Indian yarn imports through land ports in March. Additionally, a committee under Bangladesh’s interim government suggested closing Chilahati, Daulatganj and Tegamukh land ports along the Indian border, while recommending suspension of Balla land port operations.
India-Bangladesh relations deteriorated significantly after former prime minister Sheikh Hasina’s departure from Dhaka in August last year amid large-scale anti-government protests.
Relations worsened further when the interim government led by Yunus proved unable to prevent attacks against minorities, particularly Hindus, in Bangladesh.
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