Dhaka is studying the exigent situation for a response shortly as India sealed their land-ports to import of a slew of products from Bangladesh, including apparel made from imported Indian yarn.
Stating that he was not yet officially informed about the latest taboo involving bilateral trade-in a back-to-back restriction after recent transshipment embargo-Commerce Adviser Sk. Bashir Uddin Sunday said Indian traders would also to be affected as the two sides are interdependent for geographical proximity.
Still he holds the hope for continuity of bilateral trade and business between Bangladesh and India "in greater interest of consumers and traders both".
The adviser made his observations to reporters at his secretariat office in Dhaka a day after the newly imposed restrictions by the Indian government on the import of various items from Bangladesh to India.
But he has not officially been informed about the Indian restrictions on the import of goods from Bangladesh. Based on media and social-media reports, he said, necessary analysis has been started as to what step should be taken by the Bangladesh government.
Replying to a question, the commerce adviser said, "We do not export much furniture to the neighbouring state. In comparison, we export a large amount of clothing. The main reason for the exports from Bangladesh is competitiveness. We hope that bilateral trade would continue in the interest of consumers and traders of both countries."
Asked if the newly imposed restriction is in sync with the previous transshipment ban, he said it did not happen in continuation of the earlier transshipment taboo. "Due to newly imposed restrictions, Indian traders will also be affected. Both nations are dependent on each other due to geographical reasons."
The businessman-turned functionary of the post-uprising interim government hopes it will take a day or two to understand the situation and then the government will decide what to do next in this connection.
Mr. Uddin further said, "We believe in trade liberalization. We have to work to increase trade inclusion. It is our job to protect interests of consumers and traders."
In the two-way trade, India is in a very good position. This trade deficit will not decrease in a day. It will take a long time to eliminate it, he added.
The neighbouring India on Saturday imposed port restrictions on the import of certain goods, including readymade garments (RMG) and processed-food items, from Bangladesh. Their Directorate-General of Foreign Trade (DGFT), the Ministry of Commerce and Industry, issued a notification to this effect.
These trade restrictions reportedly came after Bangladesh restricted Indian cotton via seaports, closing land ports. But the Indian government said such port restrictions wouldn't apply to Bangladeshi goods transiting through India but destined for Nepal and Bhutan.
The prohibition took immediate effect.
Import of all kinds of RMG from Bangladesh shall not be allowed from any land port. However, it is allowed only through Nhava Sheva and Kolkata seaports, the notification reads.
It says garments, agro-processed foods, furniture and other goods from Bangladesh through land ports have been restricted.
Besides, imports of fruits, carbonated and fruit-flavoured drinks, processed foods, cotton and cotton-yarn waste, PVC and plastic products, and wooden furniture via land ports in Assam, Meghalaya, Tripura, Mizoram, and the West Bengal crossings at Phulbari and Changrabandha have also been under the restrictions.
However, the restrictions will not apply to fish, liquefied petroleum gas, edible oils, or crushed stone.
The total bilateral trade between Bangladesh and India was approximately $10.5 billion in official count in the fiscal year 2023-24, with the balance heavily tilted towards India with an annual trade surplus of $7.4 billion.
Bangladesh imported around $1.6 billion worth of cotton yarn from India in 2024. Its total apparel exports were worth over $38 billion that year, and more than $1.0 billion worth of goods were exported via Indian land ports.
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