Voicing concerns over the restrictions imposed by India, a leading RMG exporter on Saturday said such a drastic decision will naturally further deteriorate trade relations between Bangladesh and India.
"It will now take longer time for Bangladeshi garments to arrive than before, and costs will increase. That means exports will decrease to some extent," Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told UNB.
At a time when world trade is beset by various problems, such reciprocal trade liberalization decisions will further increase the level of damage to both, he said.
Rubel said Bangladesh exports half a billion US dollars to India on average every year.
"Since India is a major buyer of Bangladesh and ready-made garment, exports were on the rise. This has become a new cause of concern for us," Rubel said.
"Even if it is known that transshipment - Bhutan or Nepal - will not be affected, it will still affect business relations as a whole," he added.
Since, apart from readymade garments, other products such as fruits, carbonated drinks, plastic and PVC finished goods and wooden furniture have been restricted through India's northeastern land ports, there is a risk of impacts on overall business relations and financial losses, said the exporter.
India on Saturday imposed port restrictions on the import of certain goods, including readymade garments (RMG) and processed food items, from Bangladesh with immediate effect.
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, India has issued a notification in this regard.
These restrictions came after Bangladesh restricted Indian cotton via sea ports, closing land ports, a diplomatic source told UNB.
But, the Indian government said such port restrictions will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan.
The import of RMG from Bangladesh shall not be allowed from any land port. However, it will be allowed through Nhava Sheva and Kolkata seaports, the notification reads.
The import of fruit/ fruit flavoured and carbonated drinks; processed food items; cotton and cotton yarn waste; plastic and PVC finished goods, except pigments, dyes, plasticisers and granules that form input for own industries; and wooden furniture, shall not be allowed through any Land Customs Stations (LCSs)/ Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura and Mizoram; and LCS Changrabandha and Fulbari in West Bengal.
The port restrictions do not apply to the import of fish, LPG, edible oil and crushed stone from Bangladesh.
