BIMSTEC Negotiating FTA, Other Proposals to Enhance Trade

22 July 2016

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) free trade agreement (FTA) currently under negotiation by the inter-regional organization could benefit the region's trade, according to an ASSOCHAM India study on opportunities and challenges of economic integration. The study suggests that the FTA could help

  • operationalize production links among member countries;
  • eliminate non-tariff measures within a mutually agreed timeframe;
  • reduce goods on the negative list; and
  • introduce transit facilities enhancing BIMSTEC trade.

The inter-regional grouping is also considering other proposals to grow trade in the region, including

  • A single visa to facilitate movement of people, including investors, among the BIMSTEC countries; 
  • Extension of the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement to Myanmar, Sri Lanka, and Thailand; and 
  • An investment deal in services, to open up other avenues for growth. 

The BIMSTEC Secretariat committed to take forward recommendations of its trade chambers, including ASSOCHAM, to political leadership for a final call. 

BIMSTEC—comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand—is home to more than 1.5 billion people, with a combined gross domestic product of around $2.7 trillion.

 

Related Links:

The Government of Bangladesh has launched a fully automated trade clearance system, making the submission and issuance of...

Read More


Assam and Bhutan have pledged to strengthen their bilateral tourism ties by collaborating on smoother and more accessible...

Read More


The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) celebrated its 28th Anniversary on 16...

Read More


Nepal began its regular export of electricity to Bangladesh, by sending 40 megawatts (MW) of electricity through India's...

Read More


In a landmark move to enhance tourism cooperation between India and Nepal, the Indian Association of Tour Operators...

Read More


Reliance Power of India has signed a major agreement with Green Digital Private Limited, a Bhutan government-owned entity,...

Read More


The Adani Group of India and the Druk Green Power Corporation (DGPC) of Bhutan have signed a landmark...

Read More