Yunus told China Northeast is landlocked. Now India ends trans-shipment facility for Bangladesh

Days after Bangladesh’s Chief Adviser Muhammad Yunus said that India’s Northeast was “landlocked” and pushed for Chinese autonomy over the region, New Delhi on Wednesday suspended the transhipment facility for the country’s export cargo.

Yunus sparked a row after he called the Northeastern region “landlocked” and drew criticism for calling on China to expand its control over Indian regions during his state visit to the country. He later met Prime Minister Narendra Modi on the sidelines of the BIMSTEC Summit, where the two discussed regional stability and minority issues.

“Seven states of India, eastern part of India, called seven sisters… they are landlocked country, landlocked region of India. They have no way to reach out to the ocean,” he said.

Yunus further said, “We are the only guardian of the ocean for all this region. So this opens up a huge possibility. So this could be an extension of the Chinese economy. Build things, produce things, market things, bring things to China, bring it out to the whole rest of the world.”

How will closing the transhipment facility affect Dhaka?

In a circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the transhipment facility, which was opened in 2020 to facilitate the export of cargo from Bangladesh to third countries via the Indian Land Customs Stations en route to Indian ports and airports, was terminated with immediate effect.

The move could disrupt Bangladesh’s trade with Bhutan, Nepal, and Myanmar. Furthermore, landlocked countries like Nepal and Bhutan are likely to raise concerns over the closure of the facility as it may affect their trade with Bangladesh.

Ajay Srivastava, former trade officer and Head of GTRI, highlighted that India has consistently backed Bangladesh’s interests by offering preferential, zero-tariff access to Bangladeshi goods—excluding alcohol and cigarettes—into its large market for the past 20 years.

“However, Bangladesh’s plans to establish a strategic base near the Chicken’s Neck area with China’s assistance may have prompted this action. Bangladesh has invited Chinese investment to revitalise the airbase at Lalmonirhat, near India’s Siliguri Corridor,” Srivastava said.