India Revokes Transshipment Facility

On April 8, 2025, India revoked a transshipment facility that had allowed Bangladeshi exports to third countries via Indian land borders. This facility, established in 2020, enabled Bangladeshi goods to transit through India's land customs stations to seaports and airports in containers or closed-body trucks. India's customs department cited delays and cost inefficiencies affecting its own exports as reasons for the withdrawal .​The Loadstar+9Reuters+9The Daily Star+9

The withdrawal is expected to impact Bangladesh’s trade, particularly in the readymade garments sector, by increasing logistical costs and disrupting trade routes to neighboring countries like Nepal and Bhutan . Experts warn that the measure could strain Bangladesh’s export competitiveness and affect the broader regional trade potential. The change may also contradict World Trade Organization rules on transit freedom for landlocked countries .​Reuters+1The Daily Star+1

Relations between India and Bangladesh have cooled since Prime Minister Sheikh Hasina fled to India during political unrest in 2024 . Analysts argue that the move is detrimental to future bilateral relations and regional economic cooperation.​Reuters

The revocation of the transshipment facility underscores the complexities of regional trade dynamics and the importance of diplomatic relations in facilitating economic cooperation.