Business Community in Bangladesh Faces Turmoil
India’s abrupt decision to revoke the transshipment agreement has triggered chaos in Bangladesh’s trade sector. Export operations have stalled, and goods-laden trucks are now being returned from Indian territory.
On Thursday morning, four Bangladeshi cargo trucks were sent back from India’s Petrapole border. Similar actions were taken on Wednesday night, when India turned back multiple trucks carrying export goods. These trucks, which were headed to foreign markets, had to return to Dhaka — a development seen as a significant setback for the Yunus-led administration.
Bangladesh’s Response: Official Calm, Business Panic
Despite the disruption, Bangladesh’s Trade Advisor Sheikh Bashir Uddin insisted that the country would not face major problems, stating:
“Even if India cancels the transshipment deal suddenly, Bangladesh won’t suffer.”
However, this sentiment doesn’t reflect the concern among exporters. Many Bangladeshi business owners admit that the export market has taken a serious hit.
Background: What Was the Transshipment Agreement?
The transshipment agreement, signed on June 29, 2020, allowed Bangladesh to use Indian territory — via land, sea, and air — to export goods to third countries. It enabled the use of Indian ports, roads, and air routes as international trade corridors.
On Wednesday, India’s Central Board of Indirect Taxes and Customs (CBIC) revoked this agreement, ordering all Bangladesh-bound cargo trucks in Indian territory to return immediately.
Emergency Meeting Held in Bangladesh
After India’s decision, a late-night emergency meeting was held in Dhaka. Senior officials, including the Trade Advisor, discussed potential strategies to manage the crisis. Despite government reassurances, the impact on the export sector is evident, with many admitting the blow is severe.
India-Bangladesh Tensions Escalate Over China Comments
Analysts believe India’s move may be a reaction to recent comments made by Bangladesh’s Chief Advisor Mohammad Yunus during a visit to China. During the trip, Yunus invited China to use Bangladesh’s maritime routes and proposed the construction of a Chinese port near Bengal’s borders. He also referenced India’s “Seven Sisters” region — a sensitive topic for India.
These remarks reportedly angered New Delhi, prompting what many describe as a “diplomatic surgical strike” in the form of the transshipment cancellation.
The Road Ahead: Uncertain Future for Bangladesh’s Trade
With the transshipment deal scrapped and diplomatic ties strained, Bangladesh faces a challenging path ahead. The export sector is already feeling the pressure, and the larger geopolitical consequences remain to be seen.