What Bangladesh's Muhammad Yunus government said on India's trade curbs

India has banned the imports of readymade garments, fruit/fruit-flavoured and carbonated drinks through land routes.

Reacting to India's curbs on Bangladeshi exports through land ports, an adviser of Muhammad Yunus' interim government has said that the nation intends to resolve all outstanding trade issues with New Delhi.

The interim government in Dhaka, led by Muhammad Yunus, has taken a range of steps that appear to be aimed at whittling India’s access to Bangladesh’s markets. (AFP)

Sheikh Bashiruddin, commerce adviser of the Bangladesh interim government, claimed he hadn't received any official communique from the Indian government over the trade curbs. 

"We do not know anything officially about India's steps yet. We will be able to take action after we know officially. If any problems arise, both sides will discuss and try to resolve them,” he said.

India has banned the imports of readymade garments, fruit/fruit-flavoured and carbonated drinks, baked goods, snacks, chips and confectionery, cotton and cotton yarn waste, plastic and PVC finished goods and wooden furniture from Bangladesh through road routes.

Earlier, Bangladesh had banned the import of yarn from India by land route. India had also cancelled the trans-shipment facility for the export of goods from Bangladesh to third countries.

The reciprocal trade restrictions came amid diplomatic tensions triggered by the ouster of Sheikh Hasina (the prime minister of Bangladesh at the time) from the country last year and the persecution of Hindu minorities.

"We have learned from social media and news that they (India) have taken some decisions regarding land ports, especially Akhaura and Dawki ports, and some border areas. Our main goal is to achieve competitiveness. This is a profitable matter for both countries", he added.

"We think that India itself is a rich country in the textile or clothing industry. Even then, when these products are exported from our country, it is based on our capabilities. We are not affected by trans-shipping. We have solved this problem on our own using our capabilities", the Adviser said.

“Since we are a geographically connected country, our competitiveness, transportation costs and other factors are fixed. In this regard, we impose restrictions on the import of our agricultural products at different times; India also does. This is a process of trade management, and we are working on that. If a problem arises or develops there, both parties will discuss and try to resolve it,” Bashiruddin said.

India's trade restrictions will impact $770 million, which amounts to nearly 42 per cent of total Bangladeshi imports.

After India's retaliatory action, Bangladesh would have to export its ready-made garments in India through Nhava Sheva and Kolkata seaports.

With inputs from ANI