Businesses call for removing tariff and non-tariff barriers to enhance exports

Bangladeshi businesses have urged the government to take initiatives to boost exports to India through land ports and remove trade barriers with the country’s largest neighbouring economy in an effort to narrow the widening trade gap.

According to industry insiders, the proposals were submitted to the Ministry of Commerce ahead of the 16th meeting of the India-Bangladesh Joint Working Group on Trade, scheduled to take place in Delhi in June.

Sources concerned said the Indian side may raise issues such as reopening land ports for yarn exports to Bangladesh and matters related to bilateral agreements signed during the Awami League-led government.

The issues surfaced after the Ministry of Commerce sent separate letters to trade bodies, ministries and government agencies seeking proposals and updates on the implementation of decisions made during the previous round of talks.

Ministry officials said Bangladesh has already requested India to finalise a date in June for the meeting in Delhi.

Speaking to The Financial Express, Commerce Secretary (in charge) Abdur Rahim Khan said Bangladesh had proposed two possible dates in keeping with diplomatic practice, from which India would select one.

BGMEA President Mahmud Hasan Khan said the key challenge in Bangladesh-India trade currently lies in difficulties surrounding imports and exports through land ports.

He noted that complications also persist in some online procedures. For instance, BTMA has alleged that certain firms are making “false declarations” regarding yarn imports.

To resolve such issues, he said, all stakeholders — including the government, BGMEA and BTMA — must work together.

“India will also need to take a cooperative approach. Imports through land ports should not be halted entirely,” he told the FE.

He added that transshipment is another issue likely to feature prominently in the upcoming talks.

“We will clearly raise these matters. They may claim the allegations are baseless. There are several other issues as well,” said the head of the country’s largest export-sector association.

BKMEA President Mohammad Hatem said India’s restrictions on exports through land ports should be withdrawn to facilitate trade, which remains heavily tilted in India’s favour.

He also identified non-tariff barriers as a major obstacle. “For example, Indian authorities often do not accept laboratory test reports or BSTI certifications issued in Bangladesh,” he said.

“In some cases, exporters are compelled to obtain certification from another Indian state, which is extremely difficult for us,” he added.

Bangladesh Jute Spinners Association Chairman Tapas Pramanik expressed serious concerns over restrictions on jute exports, noting that Bangladeshi exporters have been facing anti-dumping duties since 2017.

He further said India has initiated steps to impose countervailing duties on Bangladeshi jute products, describing the move as unjustified.

According to him, the investigation into countervailing duties was launched without following proper procedures and has been conducted in a one-sided manner. “This amounts to coercion by the Indian government,” he alleged.

He urged the government to address the issue seriously during the next round of bilateral talks.

“If India refuses to withdraw the measure, Bangladesh should take the matter to the WTO,” he suggested.

He warned that the suspension of exports through land ports has already increased costs, while tariff and non-tariff barriers continue to hurt businesses. “If countervailing duties are imposed again, losses for the business community will deepen further,” he said.

Former member of the Bangladesh Trade and Tariff Commission Dr Mostafa Abid Khan echoed the concerns of business leaders, saying Bangladesh should strongly push for the removal of restrictions on exports through land ports.

“Otherwise, exports will suffer significantly and the trade gap will widen further,” he said, adding that the issue should be a top priority for Bangladesh during the negotiations.

He believes India, in return, may seek the removal of restrictions on yarn imports through land ports.

Dr Khan also urged the government to raise concerns over anti-dumping and countervailing duties imposed on Bangladeshi jute exports.

He further expressed concern over the timing of the negotiations, noting that a BJP-led government has recently taken office in West Bengal.

According to him, the Indian side may question the effectiveness of bilateral agreements signed during the Awami League government, particularly those involving the use of Chattogram port for India’s “Seven Sisters” region.

Data from the Export Promotion Bureau (EPB) and Bangladesh Bank show that trade relations between Bangladesh and India continue to be characterised by a large and persistent trade deficit for Bangladesh.