Trade War Sparks Between India and Bangladesh Amid Global Economic Tensions

 

As the world watches the ongoing trade war between the United States and China, a new trade conflict has quietly emerged in South Asia—this time between neighboring countries India and Bangladesh. The root of the discord lies in the sudden halt of Indian exports through land routes, severely impacting Bangladesh’s access to essential commodities.

In response to Bangladesh’s imposition of restrictions on Indian goods arriving via land borders, India has now retaliated by halting its own exports to Bangladesh. The Indian government claims that Bangladeshi trade practices have caused economic harm to Indian exporters. Measures are now being taken to protect domestic interests.

Indian officials have also raised the matter at the international level. The government's chief economic advisor, Professor Yousuf, recently pointed out during an Asian Development Bank seminar that China, not just exporting its goods to India through its own companies, is also using Bangladesh as a secondary route. These goods are entering India through land borders labeled as Bangladeshi exports.

To prevent this, India has strengthened checks at border land posts, especially in Tripura and other northeastern regions. With increasing scrutiny, movement of goods from Bangladesh to India has slowed significantly. In retaliation, Bangladesh has imposed a 37% duty on imports from India. This was officially announced, with Bangladesh accusing India of adopting a protectionist stance.

Experts indicate that while India claims its actions are based on economic and security considerations, Bangladesh views them as politically motivated. Some believe that the sentiment against India in Bangladesh may intensify in the lead-up to its national elections in early 2024.

Efforts are now underway to initiate dialogue and de-escalate the trade tensions. However, with the deepening of trade-related misunderstandings and nationalistic sentiments rising on both sides, it remains uncertain when normal trade relations will resume.