In a significant diplomatic action, the Narendra Modi administration has revoked a special arrangement provided to Bangladesh that facilitated the transit of goods to other nations through Indian territory. This facility commenced operations in June 2020. This facilitated the transportation of goods from Bangladesh to nations such as Bhutan, Nepal, and Myanmar. With the shutdown of this facility, Bangladesh’s exports will increase in cost.
This choice is said to have been made following Muhammad Yunus’ two errors – his trip to China and his labeling of India’s northeastern states as ‘lacking access to the sea’. He also referred to Bangladesh as “the sole guardian of the sea in the area.” He additionally stated that China has a chance to enhance its economic influence. Nonetheless, India has stated that this choice will not impact exports to Nepal and Bhutan, and that it was made due to delays and rising costs.
India has named this facility provided to Bangladesh the Trans-shipment Facility, referring to the use of a third country’s port or airport for transporting goods between two nations. In 2020, this facility was provided by India to Bangladesh. As a result, Bangladesh would be able to transport its products to other nations using Indian ports and airports.
Nevertheless, this facility created significant congestion at ports and airports in India. This created challenges for Indian exporters. Their products were not arriving punctually. They were required to pay higher shipping costs. Consequently, Indian exporters requested the government to revoke this assistance. Nonetheless, in spite of its own loss, India continued to keep this facility available for the neighboring nation. This was akin to a present from India to assist its advancement.
The government claims this choice will alleviate the overcrowding at Indian ports and airports. Indian exporters stand to gain.
India permitted the passage of export items from Bangladesh to other nations via Indian land customs stations and subsequently through Indian ports and airports starting June 29, 2020. Nevertheless, the Indian government canceled the provision on April 8 of this year. After this decision, four trucks transporting transit goods were rejected at Bangladesh’s Benapole port on April 9.
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