Before Delhi ended trans-shipment facility, Dhaka stopped import of Indian yarn
Bangladesh’s decision to halt yarn imports from India was apparently done to enable more imports from Pakistan, which offers yarn at a less competitive price
NEW DELHI: India on Thursday said the decision to end an arrangement for trans-shipment of Bangladeshi cargo to third countries was a response to measures by Dhaka, including closure of three land ports and halting of yarn imports, that had a bearing on bilateral trade.
External affairs ministry spokesperson Randhir Jaiswal told a weekly briefing that India wants a “positive and constructive” relationship with Bangladesh and the move to end the trans-shipment arrangement will not affect Bangladesh’s trade with Bhutan and Nepal via Indian territory.
India last week ended a nearly five-year-old arrangement for trans-shipment of Bangladeshi export cargo to third countries through Indian airports and ports against the backdrop of increasingly strained bilateral relations. Officially, the Indian side cited congestion at airports and ports as the reason for the move.
“We stand for a democratic, inclusive and prosperous Bangladesh. As far as trade issues are concerned, we made an announcement last week regarding the trans-shipment facility,” Jaiswal said.
“We had taken that measure because of the congestion we see in our ports and 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.”
Jaiswal added that Prime Minister Narendra Modi had told Yunus at their first meeting in Thailand on the margins of a Bimstec Summit that India looks forward to a “positive and constructive” relationship with Bangladesh.
While Jaiswal didn’t give details, people familiar with the matter said on condition of anonymity that Bangladesh’s interim government had halted yarn imports from India via land ports in March, a move the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) described as “suicidal”.
The people said the halting of yarn imports from India was apparently done to enable more imports from Pakistan, which offers yarn at a less competitive price.
In March, a committee set up by Bangladesh’s interim government recommended the closure of Chilahati, Daulatganj and Tegamukh land ports on the border with India, and the suspension of operations at Balla land port. The people said the unilateral closure of land ports is a “regressive” step, especially at a time when both sides are looking to improve logistics by upgrading existing land ports and opening more such facilities.
The people added that in January, Bangladesh customs formed an Investigation, Research and Management Unit for inspecting cargo movements through the integrated check post at Benapole along the border with West Bengal, a move that is expected to hit trade. This unit has been tasked to conduct more physical examinations of goods imported from India, which the people described as a “restrictive” step that will delay the processing of goods from India.
India-Bangladesh ties have cratered since a caretaker administration led by Nobel laureate Muhammad Yunus assumed office in Dhaka last August, following the ouster of the Sheikh Hasina government after weeks of student-led protests. The Indian side has repeatedly criticised the interim government’s handling of the repression of Bangladesh’s minorities and the rise of radical groups.
The Bangladeshi side has described reports of attacks on minorities, including Hindus, as exaggerated and sought the extradition of Hasina, who is currently in self-exile in India.
