India’s decision to curb Bangladeshi exports via land ports aimed at ensuring fairness: Sources

India, in a latest move, decided to curb Bangladeshi exports of ready-made garments and several other consumer goods through land ports. The move is aimed at ensuring fairness and equality in bilateral trade, according to government sources. The latest step by New Delhi sends a signal to Dhaka that it should not assume the Northeast as a captive market for its exports, and it cannot cherry-pick terms of bilateral trade solely for its benefit. India seeks to achieve the following objectives:

• Equal Market Access: Land port restrictions imposed by India on select exports from Bangladesh to the Northeast are expected to restore equality in the relationship. While India had hitherto allowed all exports from Bangladesh without restrictions, the transit and market access to the Northeast had been restricted by Bangladesh. This measure by India restores equal market access for both countries. Bangladesh has been seeking equality in engagement with India. 
• Reciprocity: The relationship with Bangladesh will be on reciprocal terms. RMG imports from Bangladesh restricted to only two seaports (Kolkata and Nhava Sheva, Mumbai) are a reciprocal measure to Bangladesh imposing similar trade restrictions on Indian yarn and rice, as well as selectively enhanced inspection on all Indian goods exported to Bangladesh.
• Not allowing Dhaka to cherry pick and presume Northeast as a captive market: Bangladesh needs to realise that it cannot cherry pick terms of bilateral trade solely for its benefit or assume North East is a captive market for its exports while denying it market access and transit. 
• Northeast and BIMSTEC: As underlined by Prime Minister Modi, the Northeast is integral to BIMSTEC. The equal market space now available in the resource-rich northeast is expected to give a fillip to manufacturing and entrepreneurship in the region under the Atmanirbhar Bharat schemes and policies.

India on Saturday decided to allow entry of ready-made garments from Bangladesh only through Kolkata and Nhava Sheva seaports and barred imports of a range of consumer items through land transit posts in the Northeast.

Besides ready-made garments (RMG), plastics, wooden furniture, carbonated drinks, processed food items, fruit flavoured drinks, cotton and cotton yarn waste will not be allowed to enter India through land customs stations and check posts in Meghalaya, Assam, Tripura and Mizoram, and Phulbari and Changrabandha in West Bengal, according to a government notification.

(With inputs from agencies)