India Halts Trans-Shipment to Bangladesh After Yunus Labels Northeast as 'Landlocked'

A few days after Bangladesh’s Chief Adviser, Muhammad Yunus, referred to India’s Northeast as "landlocked" and advocated for Chinese autonomy over the region, New Delhi took action by suspending the transshipment facility for Bangladesh's export cargo.

Representational image. AP

Yunus' remarks, which labeled the Northeast as “landlocked” and suggested that China should extend its control over Indian territories, sparked controversy during his state visit. Later, he met with Prime Minister Narendra Modi on the sidelines of the BIMSTEC Summit, where they discussed regional stability and issues related to minorities.

“Seven states of India, eastern part of India, called seven sisters… they are landlocked country, landlocked region of India. They have no way to reach out to the ocean,” he said.

Yunus further said, “We are the only guardian of the ocean for all this region. So this opens up a huge possibility. So this could be an extension of the Chinese economy. Build things, produce things, market things, bring things to China, bring it out to the whole rest of the world.”

How is Dhaka likely to be impacted by the closure of the transshipment facility?

The Central Board of Indirect Taxes and Customs (CBIC) issued a circular announcing the immediate termination of the transshipment facility, which was established in 2020 to facilitate the export of cargo from Bangladesh to third countries via Indian Land Customs Stations, en route to Indian ports and airports.

This decision could disrupt Bangladesh’s trade with Bhutan, Nepal, and Myanmar. Additionally, landlocked countries such as Nepal and Bhutan may raise concerns, as the closure of the facility could impact their trade with Bangladesh.

Ajay Srivastava, former trade officer and Head of GTRI, emphasized that for the past 20 years, India has consistently supported Bangladesh’s interests by providing preferential, zero-tariff access to Bangladeshi goods—excluding alcohol and cigarettes—into its vast market.

“However, Bangladesh’s plans to establish a strategic base near the Chicken’s Neck area with China’s assistance may have prompted this action. Bangladesh has invited Chinese investment to revitalise the airbase at Lalmonirhat, near India’s Siliguri Corridor,” Srivastava said.

What did Muhammad Yunus say?

During a recent four-day visit to China, Muhammad Yunus referred to India’s Northeast as "landlocked," highlighting its lack of direct access to the sea and portraying Bangladesh as the region’s vital maritime gateway.

Positioning Dhaka as South Asia’s "sole guardian of the ocean," the Chief Adviser called on Beijing to expand its economic engagement with Bangladesh.

"The seven states of India, the eastern part of India, are called the Seven Sisters. They are a landlocked region of India. They have no way to reach out to the ocean. So this opens up a huge possibility. This could be an extension of the Chinese economy," Yunus had remarked during a high-level roundtable held in Beijing.

Responding to Yunus's comments, External Affairs Minister (EAM) S. Jaishankar criticized Bangladesh, emphasizing that India views cooperation as a comprehensive approach, not something to be selectively applied.

We, after all, have the longest coastline in the Bay of Bengal, of almost 6,500 km. India shares borders not only with the five BIMSTEC members, and connects most of them, but also provides much of the interface between the Indian sub-continent and ASEAN. Our North-Eastern region in particular is emerging as a connectivity hub for the BIMSTEC, with a myriad network of roads, railways, waterways, grids and pipelines," the External Affairs Minister said.

(This Article was originally published by First Post)