Against the backdrop of strained political relations between Bangladesh and India and various restrictions on bilateral trade, the 16th meeting of the two countries’ Joint Working Group on Trade will be held in New Delhi on 8 and 9 October.
Removing tariff and non-tariff barriers, restoring the normal movement of goods through land ports and seeking a review of India’s anti-dumping duties on Bangladeshi jute products will be among Bangladesh’s priorities at the meeting.
A 10-member Bangladeshi delegation will leave Dhaka for Delhi on 7 October. Ayesha Akter, additional secretary (FTA) at the commerce ministry, will lead the delegation.
A senior commerce ministry official, speaking to TBS on condition of anonymity, said the meeting will discuss ways to reduce the trade deficit, remove obstacles to imports and exports, and strengthen trade and economic ties.
“India’s new duties on Bangladeshi jute products and Bangladesh’s restrictions on imports of Indian yarn will also be discussed. In short, the Bangladeshi delegation is going to the meeting prepared to discuss all major trade-related issues,” he said.
The 15th meeting was held in Dhaka on 26 and 27 September 2023. The previous, 14th meeting took place in New Delhi on 2 and 3 March 2022. The regular annual meeting was not held after Bangladesh’s government changed in 2024 amid a cooling of relations between the two countries.
According to a notice published on the website of India’s Ministry of Commerce and Industry, previous meetings discussed infrastructure development at land ports and integrated check posts, withdrawal of port-related restrictions, reopening border haats, rail transportation of goods, regional connectivity, harmonisation and mutual recognition of product standards.
Preparations and a joint study for the Bangladesh-India Comprehensive Economic Partnership Agreement (CEPA), supply of essential goods to Bangladesh, and keeping the Petrapole-Benapole check posts open 24 hours were also discussed.
However, after the change of government in Bangladesh in August 2024, talks between the two countries also stalled, while bilateral trade relations deteriorated.
In April 2025, Bangladesh stopped imports of Indian yarn through the Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari land ports, while allowing imports by sea.
A few weeks later, India imposed restrictions on land-route imports from Bangladesh of various products, including ready-made garments, processed food, plastics and PVC. In June that year, restrictions were also imposed on jute and certain textile products.
The restrictions have affected Bangladesh’s exports through Benapole port. In fiscal year 2025-26, 1,89,358 tonnes of goods were exported to India through the port, down from 3,81,440 tonnes in the previous fiscal year.
Overall trade, however, has continued. According to National Board of Revenue data, Bangladesh’s imports from India increased to $10.96 billion in FY2025-26 from $9.62 billion in the previous fiscal year. During the same period, Bangladesh exported goods worth $1.75 billion to India, compared with $1.76 billion a year earlier.
On 24 September, India’s finance ministry set revised anti-dumping duties on jute yarn or twine, hessian fabric, jute sacks and cloth imported from Bangladesh and Nepal.
For Bangladeshi jute yarn or twine, the duty is as high as $445 per tonne. The duty was determined following a mid-term review of the existing duty rather than a new investigation.
In addition, on 29 September, India’s Directorate General of Trade Remedies recommended anti-dumping duties of up to $218 per tonne on PET film imported from five countries, including Bangladesh. It recommended a duty of $58 per tonne for Akij Biax Films. However, the duties have not yet taken effect pending notification from the Ministry of Finance.
India is Bangladesh’s second-largest source of imports. The country supplies raw materials for various industries, including cotton, yarn and fabrics. Demand for these products also remains strong because of their competitive prices and requirements from international buyers to source products from specific origins.
Last August, Commerce Minister Khandaker Abdul Muktadir and Indian High Commissioner to Bangladesh Dinesh Trivedi discussed reopening closed border haats, ensuring full operational capacity at land ports and withdrawing restrictions on imports of Indian yarn at a meeting.
After the meeting, Khandaker Abdul Muktadir told journalists that trade between the two countries had slowed due to various obstacles over the previous one and a half years.
In May this year, the commerce ministry sought the views of business organisations as part of preparations for the meeting. Business leaders recommended withdrawing restrictions at land ports, removing non-tariff barriers and restoring transshipment facilities.
In September, Indian Deputy High Commissioner Pawankumar Tulshidas Badhe held a meeting with Bangladeshi business leaders at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). At the meeting, he proposed reducing tariff and non-tariff barriers and forming a joint B2B task force comprising businesses from the two countries.
Source: https://www.tbsnews.net/foreign-policy/bangladesh-india-trade-meeting-delhi-amid-political-tensions-1564571
