India ends cross-professional institutions to Bangladesh goods to prevent WTO currencies
Chennai: India ended its cross-occupational facilities for Bangladesh, undermining trade with countries such as Nepal and Bhutan. The move has raised concerns about India’s commitment to the WTO provisions.
“The 29/2020 circular cycle dated 29.06.2020 stipulates that the transshipment of exported goods from Bangladesh is destined to be through the Land Customs Station (LCSS) to ports and airports to third countries. It has decided to revoke the cycle of the above cycle as an Indian capacity. The cargo has been allowed to be maintained within the scope of India. Tuesday.
This will undermine Bangladesh’s trade with Bhutan and Nepal. This allows the use of the Indian Land Customs Station (LCSS) to Indian ports and airports to move goods from Bangladesh to a third country. This helped Bangladesh cuts on shipping time and costs. Now, without it, Bangladesh exporters could face logistical delays, higher costs and uncertainty. Over the past two decades, India has also allowed one-way zero tariff access to Bangladesh goods, in addition to alcohol and cigarettes.
According to GTRI, Bangladesh plans to establish a strategic foundation in the Chicken Neck region of Siliguri with the help of China, which may have triggered the action. Bangladesh also invited China to invest in the revitalization of the aerial base in Lalmonirhat near the Siliguri Corridor in India.
However, the move could raise concerns about India’s commitments under the WTO rule that require freedom of transport of goods to and from landlocked countries. Under WTO rules, especially Article 5 of the General Agreement on Tariffs and Trade (GATT) of 1994, all WTO members must allow free goods to and from landlocked countries. This means that such transit must be unrestricted, without unnecessary delays, and non-compliance with transit duties. It also requires transparent procedures, reducing inspections and regional cooperation, while promoting practical solutions such as guarantees or bonds to mitigate cross-border trade.
