NEW DELHI: India has imposed immediate restrictions on the import of jute and allied fibre products from Bangladesh, in a move reflecting growing tensions in bilateral trade relations. The new measures apply to all land and seaports across the country, with the sole exception of the Nhava Sheva seaport in Maharashtra, according to a notification from the Directorate General of Foreign Trade (DGFT).The restrictions, however, will not apply to goods exported by Bangladesh to Nepal and Bhutan. At the same time, the re-export of such Bangladeshi goods from Nepal or Bhutan into India “will not be allowed,” the notification clarified.Under the South Asian Free Trade Area (SAFTA) agreement, Bangladesh’s jute exports currently enjoy duty-free access to the Indian market. However, the Indian jute industry has long raised concerns over the adverse impact of dumped and subsidised imports, particularly of jute yarn, fibre, woven fabrics, and bags originating from Bangladesh.“This has placed the Indian industry at a disadvantage, as there is credible evidence that Bangladeshi jute exports continue to benefit from government subsidies,” a source familiar with the matter said.
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