India Halts Transshipment Facility in Response to Dhaka's Actions: MEA

On Thursday, India stated that its decision to revoke the transshipment facility for Bangladeshi exports to third countries was a response to actions taken by Dhaka that affected bilateral trade.

MEA spokesperson Randhir Jaiswal | TOI

While New Delhi did not provide specific details about the measures by Dhaka, it is understood that Bangladesh's interim government's move to stop importing Indian yarn and the closure of three land ports led to India's decision regarding the transshipment facility.

"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 representative Randhir Jaiswal stated.

"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 said.

The spokesperson addressed questions about India-Bangladesh trade relations during his weekly media briefing.

Last week, India announced the suspension of the transshipment facility it had extended to Bangladesh for exports to the Middle East, Europe, and several other regions via its ports and airports.

The Indian government attributed the decision to congestion at airports and ports.

However, India has exempted Bangladeshi exports to Nepal and Bhutan, as such trade facilitation is required for landlocked countries under World Trade Organization (WTO) guidelines.

The transshipment agreement between India and Bangladesh, aimed at enhancing trade ties, was established in 2020.

Jaiswal mentioned that Prime Minister Narendra Modi had told Muhammad Yunus during their initial meeting in Thailand, on the sidelines of a BIMSTEC Summit, that India was eager to maintain a "positive and constructive" relationship with Bangladesh.

Reports indicate that Bangladesh halted yarn imports from India via land ports in March.

In the same month, a committee formed by Bangladesh's interim government recommended closing the Chilahati, Daulatganj, and Tegamukh land ports along the Indian border and suspending operations at the Balla land port.

In response to another query, Jaiswal confirmed that India has taken note of the visit by Pakistan's foreign secretary to Bangladesh.

(This Article was originally published by Business Standard)