India, Bangladesh impose tit-for-tat trade restrictions

DHAKA: Businesses are bracing for impact as neighbours India and Bangladesh impose tit-for-tat trade restrictions after months of tension.

Last month, Bangladesh restricted land imports of Indian cotton yarn to protect local industries. Days earlier, India had abruptly stopped a transhipment facility that allowed Bangladesh to export goods to third countries via Indian ports and airports, citing “congestion”.

Relations have deteriorated since former prime minister Sheikh Hasina was ousted in August following mass protests. Now in exile in India, Hasina faces charges in Bangladesh of crimes against humanity, money laundering, and corruption — all of which she denies.

Dhaka has demanded her extradition, but Delhi has not responded officially.

India has criticised alleged attacks on the Hindu minority in Bangladesh, saying the recent killing of a Hindu leader “reflects a pattern of systematic persecution under the interim government”. Bangladesh denies targeting minorities, calling such incidents politically motivated or ordinary crimes. Hindus comprise less than 10 percent of its 170 million citizens.