Non-tariff barriers imposed by both Bangladesh and India have increased bilateral trade costs by approximately 20%, according to Bangladesh’s Ministry of Commerce.
With land port movements sharply declining, traders are now forced to reroute industrial imports and exports through Chittagong Port, making transactions slower and more expensive.
Commerce Secretary Mahbubur Rahman said Bangladesh has repeatedly sought talks sending three formal letters at secretary level and a direct appeal from the Commerce Adviser to India’s Commerce Minister but received no response.
“India isn’t even explaining why it’s avoiding dialogue,” he noted.
The trade rift began in April when India halted transshipment facilities for Bangladeshi goods to third countries.
Dhaka retaliated by suspending yarn imports via 11 land ports, prompting New Delhi to restrict Bangladeshi exports of ready-made garments, processed food, and furniture in May.
As a result, truck traffic at key land ports has plummeted, from 400 daily to just 150, and imports through some crossings have dropped by over 50 per cent.
India remains Bangladesh’s second-largest trading partner, with annual trade exceeding $15 billion, underscoring the urgency for de-escalation.