Bangladesh's trans-shipment facility cancellation won’t affect exports to Nepal, Bhutan: India

The Indian Ministry of External Affairs has said that although the trans-shipment facility given to Bangladesh has been cancelled, it will not affect the export of goods to Nepal and Bhutan.

Randhir Jaiswal, spokesperson of Indian Ministry of External Affairs, said, “Bangladesh's trans-shipment facility to send goods to third countries was extended in 2020. As a result, there was 'significant congestion' at Indian airports in the last five years. This has led to the goods of Indian exporters being stuck, delayed and the cost of supplies has increased.”

At a news briefing on Wednesday, he explained that that is why it has been decided to cancel the trans-shipment facility for Bangladesh's exports to third countries using airports and ports through India.

Randhir Jaiswal also asserted that this will not affect Bangladesh's trade with Nepal and Bhutan.

The Association of Ready-Made Garment Exporters of India (AEPC) has been demanding the cancellation of Bangladesh's trans-shipment facility for a long time, he also said.

According to AEPC Chairman Sudhir Sekhri, “Bangladesh and India are competitors in textile exports. The cancellation of Bangladesh's trans-shipment facility will now create more space for Indian exports at Indian airports.”

Ajay Srivastava, head of the New Delhi-based think tank Global Trade Research Initiative, said that under Article 5 of the 1994 General Agreement on Tariffs and Trade of the World Trade Organisation (WTO), all member states are obliged to ensure free transit of goods in landlocked countries.