Dhaka to raise trade barriers with New Delhi

The 16th Bangladesh-India Joint Working Group on Trade will be held in New Delhi on Thursday and Friday, respectively with Bangladesh set to raise several bilateral trade issues, including non-tariff barriers, anti-dumping duties on jute goods and land port-related matters.

A 10-member government delegation led by Ayesha Akther, additional secretary to the commerce ministry, left the country yesterday to attend the meeting.

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“We will raise almost all the trade-related issues from Bangladesh’s side. But we do not know yet what the Indian side may raise. However, this is a platform for discussion, not a decision-making meeting,” a delegation member, requesting anonymity, told The Daily Star over the phone.

Among the major issues, Bangladesh will discuss anti-dumping duties on Bangladeshi jute goods, rail freight and the normal movement of goods between the two countries.

Non-tariff barriers are major obstacles to bilateral trade and will also be discussed. However, the official said the Comprehensive Economic Partnership Agreement (CEPA) is not on Bangladesh’s agenda.

The bilateral trade deficit will also come up for discussion, as India’s exports to Bangladesh are much higher than Bangladesh’s exports to India.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), said the meeting was a constructive approach by both countries at a time when bilateral relations remain strained.

Trade relations between Bangladesh and India should be normal, as the two neighbouring countries are important sources of raw materials and finished goods for each other, he said. India could become a larger market for Bangladesh if trade barriers are reduced.

Once Bangladesh loses preferential market access after graduating from the group of Least Developed Countries (LDCs), Bangladeshi exporters may face a 20 percent duty on exports to India, compared with the current zero rate.

“It will come as a shock for Bangladeshi exporters,” he said.

Bangladesh mainly exports garments to India, although agricultural and fisheries products are also exported there, he added.

In fiscal 2025-26, Bangladesh exported goods worth $1.75 billion to India and imported goods worth $10.96 billion, according to the National Board of Revenue data.

After China, India is Bangladesh’s second-largest source of imports, with local traders importing large volumes of industrial raw materials, fabrics, yarn and cotton.