Latest news with #BangladeshGarmentManufacturersandExportersAssociation
Express Tribune
24-05-2025
- Business
- Express Tribune
Bangladesh cancels $21m defence contract with India's GRSE
The textile industry would be temporarily affected by the move, said Rakibul Alam Chowdhury of the Bangladesh Garment Manufacturers and Exporters Association. PHOTO: FILE Listen to article Bangladesh has cancelled a $21 million defence contract with India's state-owned Garden Reach Shipbuilders and Engineers Ltd (GRSE), amid growing strain in bilateral relations. The contract, awarded in July 2024, was for an advanced ocean-going tug for the Bangladesh Navy, a vessel designed for deep-sea towing and salvage missions. GRSE, a public sector unit under India's Ministry of Defence, confirmed the cancellation in a stock exchange filing on May 21. According to The Hindu, GRSE stated that the cancellation was anticipated and followed 'mutual discussions' with the Bangladesh government. The company added that the financial impact would be negligible, as the order represented just 0.8% of its ₹22,680.75 crore ($2.7 billion) order book as of March 31, 2025. No official reason was given by Dhaka. However, as reported by Business Standard, analysts view the move as a possible retaliation for New Delhi's recent imposition of import restrictions on Bangladeshi goods. On May 18, India tightened controls at Integrated Check Posts in its northeastern region, affecting shipments of ready-made garments and processed foods. These measures followed India's earlier decision to withdraw a transshipment facility that had enabled Bangladeshi goods to reach third countries via Indian territory. The diplomatic setback comes amid a broader shift in Bangladesh's foreign policy posture following the departure of Sheikh Hasina's administration in August 2024. The ocean-going tug, while modest in budgetary terms, had been a strategic symbol of India-Bangladesh defence cooperation. Its cancellation underscores a deterioration in that relationship. In a press release on May 22, GRSE said it had been selected as the lowest bidder for the Indian Navy's Next Generation Corvette (NGC) programme. The company, based in Kolkata, has delivered 111 warships to Indian maritime forces and friendly foreign navies, including missile and anti-submarine corvettes. India-Bangladesh tensions rise amid trade curbs and political crackdow India-Bangladesh relations have deteriorated in recent months due to escalating trade restrictions and political developments. India has restricted imports of Bangladeshi garments to select ports, impacting exports worth $700 million annually. It has also blocked Bangladeshi consumer goods at 11 northeastern land ports and ended a key transit facility for Bangladeshi exports to third countries via Indian routes. In response, Bangladesh halted yarn imports from India through land ports in mid-April. Despite being India's largest trading partner in the region during FY24, and India ranking as Bangladesh's second-largest export market, trade ties have cooled sharply. At the same time, Bangladesh's interim government has banned the Awami League—the party of ousted Prime Minister Sheikh Hasina—under anti-terrorism laws, citing security concerns.
Yahoo
23-05-2025
- Business
- Yahoo
BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on India to allow for a three-month reprieve on its abrupt ban on the entry of Bangladeshi garment exports via its land ports. The association is urging Bangladesh's interim government to send a formal letter to the Indian government on their behalf, which would request for a three-month 'notification period' that would give ample time to clear the pending backlog of garments that are already set to be exported to India. More from Sourcing Journal Bangladesh, US Engage in Free Trade Agreement Talks US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in India Ends Land Port Entry for Bangladeshi Garment Imports Many India-bound shipments have been waiting to be unloaded at the land ports since Saturday, when the restrictions were put in place. In an interview with Bangladesh publication The Daily Star, Asif Ashraf, a former vice president of the BGMEA, said exporters were not prepared for such a sudden ban, and are now concerned about financial impacts to their business on the shipping delays. On Tuesday, Bangladesh's commerce ministry held an inter-ministerial meeting in Dhaka with stakeholders and government officials to discuss a response to India's restrictions. 'We will not take any retaliatory steps. They've taken this step, and we will engage with them,' Commerce Secretary Mahbubur Rahman told reporters after the meeting. Rahman mentioned that a meeting at the secretary level between the two countries is being considered to resolve the issue. 'We will point out that not only Bangladeshi businesses are being affected, Indian businesses will also suffer. So, let's sit together and find a solution,' said Rahman. 'We have an established secretariat-level forum with India. Last week, we sent a letter requesting a meeting. Once we receive a response, we'll know when it can be held.' According to the BGMEA, readymade garment (RMG) exports to India reached $563 million in the first 10 months of the current fiscal year. The association says 93 percent of the garments shipped from Bangladesh to India goes through land ports. The move to block entry to RMGs, as well as limit other exports like processed foods, plastic goods and wooden furniture, will impact 42 percent of India's total inbound trade from Bangladesh, according to a report from New Delhi-based Global Trade Research Initiative. The land port ban was an apparent escalation of a series of supply chain restrictions the countries have placed on each other in recent months. In February, India implemented a 20 percent import tariff on nine varieties of knitted fabrics from Bangladesh. Two months later, the country revoked Bangladesh's access to its transshipment services, which prevents Bangladeshi exporters from shipping cargo via Indian land borders and customs stations. That service, first established in 2020, allowed Bangladeshi businesses to use Indian airports and seaports to send goods to third countries. Bangladesh has since opened a new air cargo hub at one of its major airports to pick up the slack. Bangladesh also put up some of its own supply chain barriers, clamping down on foreign imports of yarns via its land ports. Yarns can still be imported via seaports and airports, but textile mills had claimed the land ports didn't have the required infrastructure to properly vet raw materials. According to the Bangladesh Textile Mills Association, 95 percent of yarn imports come from India. In April, other imports from India including rice were restricted through the land ports, while goods like paper, tobacco and powdered milk got banned outright. Bangladesh's tit-for-tat with India comes as the south Asian country still is trying to maneuver through trade negotiations with the U.S. after the Trump administration's imposition of country-specific tariffs on April 2. Both countries agreed in principle to start Free Trade Agreement (FTA) talks this week, Rahman said. Currently, Bangladesh has a 10-percent tariff placed on all goods it exports to the U.S., but that total could hike to 37 percent—or nearly 53 percent on apparel—if a new deal isn't reached by July 9. As part of a potential deal, Bangladesh's government is considering removing import tariffs on about 100 products it brings in from the U.S. In accordance with World Trade Organization rules, the removal would apply to all countries Bangladesh imports from. These products reportedly range from raw materials for readymade garments, as well as man-made fibers and wool. They would also include items like machinery, effluent treatment plants, dialysis filters, fire extinguishers and certain arms, according to a report from Bangladesh publication The Business Standard. Officials from the National Board of Revenue (NBR) told the publication that the plans were discussed during a meeting with Chief Adviser Muhammad Yunus ahead of the upcoming fiscal year budget. In 2024, Bangladesh imported goods worth $2.2 billion from the U.S., while exporting $8.4 billion, making the U.S. Bangladesh's largest export market.
Daily Tribune
19-05-2025
- Business
- Daily Tribune
India restricts some imports from Bangladesh through land ports
India's commerce ministry announced restrictions on some imports from Bangladesh via its land borders, prompting fears for the South Asian country's export-reliant economy. New Delhi announced late Saturday that ready-made garments from Bangladesh cannot be imported through land borders, while some other goods -- including cotton, processed foods and wooden funiture -- have been barred from at least six entry points in northeast India. The announcement came a month after Bangladesh banned yarn imports from New Delhi through the same land routes. The latest move is a 'big threat', Bangladeshi conglomerate Pran-RFL Group, which exports around $60 million of goods annually to India, told AFP. 'India is the largest market for Pran-RFL Group's processed foods, plastic products, furniture, and PVC-finished goods,' director Kamruzzaman Kamal said. 'With the latest restrictions, almost every category of our products are getting affected. This is a big threat for the company and the country as well,' Kamal said, urging a bilateral solution with India. The textile industry would be temporarily affected by the move, said Rakibul Alam Chowdhury of the Bangladesh Garment Manufacturers and Exporters Association. Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem also denounced the tit-for-tat move by New Delhi, adding that border trade would 'face a blow'. However, he believed that garment exporters 'will be able to cover up the impact'. The government i n Dhaka told AFP it had not been officially informed of the latest restrictions. 'We haven't received any official copy of notification. Once we get the documents and then we can come up with our decision after going through it,' said Ministry of Commerce advisor Sheikh Bashir Uddin. Bangladesh imported around $9 billion worth of goods from India in the last 10 months of the 2024 financial year, while exports to India stood at $1.51 billion, according to Bangladesh Bank and Export Promotion Bureau data. At the start of April, India cancelled a 2020 transshipment deal that allowed Bangladesh to export cargo to third countries via Indian land borders.
Time of India
18-05-2025
- Business
- Time of India
India's port curbs threaten regional trade: Bangladesh
Agency photo DHAKA: Bangladeshi exporters are raising concerns over India's newly imposed port restrictions on key export items such as readymade garments (RMG) and processed foods, warning that the move will lead to 'delays, higher costs, and disruptions' in bilateral and regional trade. While experts view the restrictions as non-tariff barriers that could significantly impact Bangladesh's export competitiveness, the interim govt has said that any issues arising from the new measures will be addressed through dialogue, expressing hope that trade ties will remain stable. Commerce adviser SK Bashir Uddin on Sunday said the govt has not yet received any formal notification on the restrictions. Expressing optimism that trade will continue, he said, 'This is in the interest of consumers and production sectors on both sides.' Meanwhile, 17 trucks carrying food products were stuck at the Burimari border due to the restrictions. These truckloads of goods were scheduled to cross the border on Sunday morning and head to Siliguri (West Bengal). A former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said it will now take longer for Bangladeshi garments to reach their destinations than before, and costs will rise. 'That means exports will decrease to some extent,' he added. 'At a time when world trade is beset by various problems, such reciprocal trade restrictions will further increase the level of damage to both sides,' the exporter noted. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Upto 15% Discount for Salaried Individuals ICICI Pru Life Insurance Plan Get Quote Undo The commerce adviser also said the govt has started assessing the potential impact of the Indian govt's move. 'We have initiated a preliminary review to determine the steps Bangladesh should consider,' he said. On Saturday, in a 'retaliatory move', the Indian govt restricted the import of several products from Bangladesh, including a ban on the entry of readymade garments through the land route. In a notification issued on Saturday, the directorate general of foreign trade, however, allowed garments, the mainstay of Bangladesh industry, to be only shipped via Nhava Sheva and Kolkata ports. While fish, edible oil, LPG and crushed stones have been spared, import of several products via all land customs stations and integrated check posts in Assam, Meghalaya, Tripura, Mizoram and Changrabandha and Fulbari in West Bengal will be discontinued.
Express Tribune
18-05-2025
- Business
- Express Tribune
India imposes border import curbs on Bangladesh amid strained ties
The textile industry would be temporarily affected by the move, said Rakibul Alam Chowdhury of the Bangladesh Garment Manufacturers and Exporters Association. PHOTO: FILE Listen to article India's commerce ministry announced restrictions on some imports from Bangladesh via its land borders, prompting fears for the South Asian country's export-reliant economy. Relations between the two countries have deteriorated after former Bangladeshi prime minister Sheikh Hasina – a long-term New Delhi ally – was ousted last year, and fled to India where she is currently living in self-imposed exile. New Delhi announced late Saturday that ready-made garments from Bangladesh cannot be imported through land borders, while some other goods – including cotton, processed foods and wooden funiture – have been barred from at least six entry points in northeast India. The announcement came a month after Bangladesh banned yarn imports from New Delhi through the same land routes. The latest move is a 'big threat', Bangladeshi conglomerate Pran-RFL Group, which exports around $60 million of goods annually to India, told AFP. 'India is the largest market for Pran-RFL Group's processed foods, plastic products, furniture, and PVC-finished goods,' director Kamruzzaman Kamal said. 'With the latest restrictions, almost every category of our products are getting affected. This is a big threat for the company and the country as well,' Kamal said, urging a bilateral solution with India. The textile industry would be temporarily affected by the move, said Rakibul Alam Chowdhury of the Bangladesh Garment Manufacturers and Exporters Association. Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem also denounced the tit-for-tat move by New Delhi, adding that border trade would 'face a blow'. However, he believed that garment exporters 'will be able to cover up the impact'. The government in Dhaka told AFP it had not been officially informed of the latest restrictions. 'We haven't received any official copy of notification. Once we get the documents and then we can come up with our decision after going through it,' said Ministry of Commerce advisor Sheikh Bashir Uddin. Bangladesh imported around $9 billion worth of goods from India in the last 10 months of the 2024 financial year, while exports to India stood at $1.51 billion, according to Bangladesh Bank and Export Promotion Bureau data. At the start of April, India cancelled a 2020 transshipment deal that allowed Bangladesh to export cargo to third countries via Indian land borders.
