Trade War: India Ends Cargo Route To Bangladesh

India has revoked Bangladesh’s transshipment facility for exports to third countries, a move that may strain Bangladesh’s trade with Bhutan, Nepal, and Myanmar. The decision, announced by India’s tax authority on April 8, cancels a 2020 policy allowing cargo movement via Indian land routes to ports. 

This shift follows remarks by Bangladesh’s interim government head, Muhammad Yunus, hinting at deeper strategic ties with China and describing Bangladesh as the “only guardian of the ocean” for Northeast India.

Yunus’ comments, made during a visit to China, suggested using Northeast India as an extension of the Chinese economy, raising security concerns in New Delhi. India sees this as a potential threat near the sensitive Siliguri Corridor, known as the “Chicken’s Neck.”

Experts warn that this policy change will disrupt regional logistics and raise costs for Bangladesh. Bhutan and Nepal may also protest, given their reliance on Indian routes for trade with Bangladesh.