India ends trans-shipment facility for Bangladesh in sharp rebuke to Yunus' 'landlocked' remark

India announced on Wednesday the cancellation of the trans-shipment facility extended to Bangladesh in 2020, citing significant congestion at Indian airports and ports.

The decision follows recent remarks by Bangladesh’s interim government head, Muhammad Yunus, who controversially described India's Northeast as “landlocked” and called for Chinese autonomy over the region.

Yunus also met with Prime Minister Narendra Modi on the sidelines of the BIMSTEC Summit in Bangkok, where the two leaders discussed regional stability and minority issues.

The Central Board of Indirect Taxes and Customs (CBIC) issued a circular confirming the termination of the trans-shipment facility, which had been established to allow the export of cargo from Bangladesh to third countries via Indian Land Customs Stations, en route to Indian ports and airports.

In a press briefing, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said, “The trans-shipment facility extended to Bangladesh resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs. Therefore, the facility has been withdrawn effective April 8, 2025.”

This cancellation could disrupt Bangladesh’s trade with Bhutan, Nepal, and Myanmar. However, Jaiswal clarified, “These measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory.”

On the Teesta Water Treaty, Jaiswal emphasised that India and Bangladesh share 54 rivers, including the Ganga and Teesta. “To address relevant issues, an institutional dialogue mechanism called the ‘Joint Rivers Commission’ is in place. Discussions could take place on matters mutually agreed upon, provided the overall environment remains conducive,” he added.