A leading RMG exporter voiced apprehension regarding restrictions on exports imposed by India on Saturday. This new development has the potential to further deteriorate trade relations between Bangladesh and India, reports UNB.
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) comments, “It will now take longer time for Bangladeshi garments to arrive than before, and costs will increase. That means exports will decrease to some extent.”
At a time when world trade is beset by various problems, such reciprocal trade liberalization decisions will further increase the level of damage to both, he said. Furthermore, Bangladesh exports half a billion US dollars to India on average every year, according to him.
“Since India is a major buyer of Bangladesh and ready-made garment, exports were on the rise. This has become a new cause of concern for us,” Rubel said. “Even if it is known that transshipment – Bhutan or Nepal – will not be affected, it will still affect business relations as a whole,” he added.
Apart from readymade garments, other products such as fruits, carbonated drinks, plastic and PVC finished goods, and wooden furniture have also been restricted through India’s northeastern land ports, there is a risk of impacts on overall business relations and financial losses, said the exporter.
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, India has issued a notification in this regard. It is to in effect immediately. The import of RMG from Bangladesh shall not be allowed from any land port. However, it will be allowed through Nhava Sheva and Kolkata seaports, the notification reads.
These restrictions came after Bangladesh restricted Indian cotton via sea ports, closing land ports, a diplomatic source told UNB.
However, the Indian government said such port restrictions will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan.