India Halts Transshipment to Bangladesh Amid Tensions

India has withdrawn a transshipment facility for Bangladesh amid diplomatic tensions following controversial statements by Dhaka's interim head. Exemptions remain for exports to Nepal and Bhutan due to WTO provisions. The decision affects Bangladeshi exports previously routed through Indian ports and airports.

India has withdrawn a crucial transshipment facility it provided to Bangladesh, citing logistical issues and diplomatic tensions as the catalysts for this decision. This facility allowed Bangladeshi exports to utilize Indian ports and airports to reach the Middle East, Europe, and other regions.

The move comes after remarks made by Bangladesh's interim head Muhammad Yunus, who indicated that India's northeastern states are landlocked and rely on Bangladesh for ocean access. The statement strained bilateral ties, prompting India to reconsider the arrangement.

While the facility's closure impacts trade with distant regions, Indian officials clarified that Bangladeshi exports to Nepal and Bhutan remain unaffected. India is bound by World Trade Organisation mandates to facilitate trade for landlocked countries.