B Mirror Desk : Bangladesh aims to prevent any further escalation of tensions with India, as recent retaliatory actions are impacting bilateral trade and the businesses of both nations. Commerce Secretary Mahbubur Rahman stated to journalists following an inter-ministerial meeting with key trade body representatives, “We will not engage in any retaliation.” The meeting was held to gather insights from various ministries, departments, government agencies, and the private sector regarding the situation. Tensions arose after Bangladesh halted yarn imports from India via four land ports on April 13, prompting India to suspend the transshipment facility for Bangladeshi garment products.
Subsequently, on May 17, India imposed restrictions on imports of garments, agro-processed foods, furniture, and other goods from Bangladesh through land ports. India ranks as Bangladesh’s second-largest import source after China. Rahman emphasized, “We will continue our efforts to avoid further escalation — we will not retaliate,” noting that Bangladesh has already reached out to the Indian commerce ministry through its foreign ministry to request a meeting at the commerce secretary level. The recent actions by the Indian government are adversely affecting not only Bangladeshi businesses but also those in India. “Let us come together and work towards a solution,” Rahman urged.
A businessman present at the meeting recommended that the government promptly send a letter to the Indian authorities, requesting a three-month postponement of the restrictions on land port usage to facilitate the clearance of outstanding consignments. He emphasized the significance of land ports for importing goods from India, noting that over the past ten months, Bangladesh has imported 350,000 tonnes of goods via this route, as sea transport is prohibitively expensive for businesses.
Many companies engage in trade with India using letters of credit, contracts, or advance payments. Failure to deliver the pending consignments could result in substantial financial losses for these businesses. Furthermore, the volume of trade is secondary, as a robust trading ecosystem has developed between Bangladesh and India over the years. ‘We need an immediate resolution to this issue,’ he stated.
A representative from a leading trade organization urged the government to initiate high-level diplomatic and political discussions with India. He mentioned that a meeting at the commerce secretary level would provide insights into the Indian perspective, warning that small, medium, and large enterprises would face significant challenges if trade barriers are not swiftly addressed. Last fiscal year, bilateral trade between the two neighboring nations reached $10.56 billion, with Bangladesh exporting goods valued at $1.56 billion and importing goods worth $9 billion, as reported by the commerce ministry during the meeting.
Bangladesh imports a variety of products from India, including industrial raw materials, garments, fabrics, intermediary goods, food items, cotton, chemicals, machinery, processed foods, agricultural products, rice, protein sources, and vegetables. In recent years, India has also become a key export market for Bangladesh, particularly for garments and agricultural products, benefiting from zero-duty advantages on shipments.
