Dhaka [Bangladesh], April 11 : An influential Bangladeshi business leader on Friday has urged India to withdraw ban on transshipment.
"I will request the Indian government to withdraw this decision (cancelling the transshipment facilities for Bangladeshi goods) because we are neighbors. We are good partners. We import huge quantity of our fabrics, dyes, chemicals, machinery, yarns so we are big importer of India. India should acknowledge that. We have good relationship with them", Faruque Hassan, Former President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), toldin an interview.
Readymade garments is the backbone of Bangladesh economy. Out of Bangladesh's total exports, more than 83/84 per cent comes by exporting apparel which is readymade garments. More than 95 percents goods go by ship and only 5 percent go by air.
"This is a very challenging year going on over all in the globally. Recently, over the tariff issue imposed by President Trump of US, the situation became very volatile for all economies including Bangladesh. Already landed price of garments in USA is going to increase, the inflation is going to increase as well", he added.
"Already Bangladesh manufacturers are under pressure from this global tariff scenario and then recently India has cancelled the transshipment facilities for Bangladeshi goods. This is going to impact because we have all the shipments going to our destinations US, Germany, UK or western world destinations. We have very less facilities fpr direct shipping the goods. Therefore, we have to ship different countries. It is internationally recognized and allowed", Hassan said.
"Cancelling the transshipment by India is going to have an impact - our freight cost will go up, our lead time will increase. Though we don't ship much quantity through India, but we are going to lose the opportunity of having more options. For global shipment, global business, you must have more options, more facilities. It will reduce our competitiveness", he said.
"From Bangladesh, we have less flights. We don't have much cargo flights from Bangladesh. Bangladesh government should immediately bring more cargo flights asking other airlines to come to Bangladesh so that we can ship goods from Dhaka, Chittagong, Sylhet, at least three big international airports", he said.
"I always believe that bilateral discussion is very important. We believe in dialogue. India which is our biggest neighbour. We have long term political and business relations with India", Hassan said.
"Bangladesh is a growing country. We are a developing country. We have huge population. Our import and export are going to increase. Doing international business with China, with Pakistan, it will not be an obstacle for doing business with India. Rather, with India, bilateral trade will further increase. Internationally, I believe, we should have relationship with each and every country", he said.
"Political side is an area but trade, business is very important with neighboring country. India should have a good relationship with Bangladesh and Bangladesh should have good relationship with India. This is very important because we should do more business with the Asian region. We should not depend on the western world that's why relationship with India and Bangladesh should more closer. Political issues or challenges should be resolved through dialogue, discussion" he said.
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