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Bangkok, July 15 The Daily Star/NewsIn.Asia) The Bay of Bengal Economic Dialogue 2024 held in Bangkok on July 12, called for the conclusion of a Free Trade Agreement (FTA) within a year between the members countries in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
BIMSTEC is a regional organisation comprising 7 member states – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. It was formed in 1997 with the aim of promoting multifaceted technical and economic cooperation among the countries of the Bay of Bengal region.
There are 1.73 billion people and having a combined gross domestic product rof US$5.2 trillion in the BIMSTEC region.
BIMSTEC sees trade as one of its priority areas, but the grouping of seven countries is yet to make any substantial progress in boosting trade among its member states in South Asia and Southeast Asia.
The bloc has not yet made any substantial progress in the reduction of tariff and non-tariff measures (NTMs), streamlining of regulatory frameworks and harmonisation of standards, according to the declaration of the third Bay of Bengal Economic Dialogue 2024 concluded on July 12 in Bangkok.
The dialogue took place ahead of the sixth BIMSTEC Summit, which is scheduled to take place in Thailand in September this year.
The South Asian Network on Economic Modeling (SANEM) in collaboration with the Chulalongkorn University, the Institute of Trade and Development (ITD) and The Asia Foundation (TAF) organised the dialogue.
Over 100 senior experts, scholars, diplomats and practitioners attended the two-day event.
The declaration, citing BIMSTEC’s bid to accelerate the finalisation of BIMSTEC Free Trade Area (FTA), urges the leaders to expedite the finalisation of the FTA and implement strategic initiatives to drive sustainable development and regional stability.
“Trade and transit facilitations must be given top priority along with energy and digital connectivity,” said the declaration, adding, “The conference recommended that the BIMSTEC FTA should be concluded in a-year time.”
It said productivity enhancement, knowledge exchange and mutual recognition of standards and certification, paperless trade and currency cooperation could make the BIMSTEC FTA more effective, said the declaration.
The conference has recommended setting up a digital dashboard on trade barriers with coverage on NTMs, it added.
The intra-regional trade within BIMSTEC remains low around 7 percent to total trade, according to a recent article of Sanem Executive Director Selim Raihan.
He said the share of BIMSTEC intra-regional trade remains higher than the Saarc region. But it lags significantly behind Asean approximately by 25 percent, he added.
Raihan, a professor of economics at Dhaka University, said a deficit in political commitment from the leaders of member countries is a crucial factor limiting BIMSTEC’s advancement.
The Bangkok Declaration following the dialogue said the geographical contiguity, abundant natural and human resources, rich historical linkages and shared cultural heritage are some of the unique advantages that BIMSTEC enjoys.
“BIMSTEC shares high trade potential and economic complementarities. Not only an energy hotspot, BIMSTEC’s strategic location is its greatest asset,” it said.
The declaration said BIMSTEC with its unique geographic location, can play a role in bridging South Asia and Southeast Asia through trade and connectivity.
“Second, BIMSTEC member states are surrounding the Bay of Bengal, which is not only a space to support regional trade and transport connectivity but it also connects international maritime trade routes between the Indian Ocean and the Pacific Ocean.”
“Maritime and digital connectivity is the key in trade and security.”
The declaration said the BIMSTEC member states are a powerhouse in some of the global products such as garments (Bangladesh), digital services (India), maritime services (Sri Lanka), consumer durables (Thailand), tourism (Nepal and Bhutan), among others.
“Therefore, greater intra- and inter-regional cooperation may pave the way for higher trade and growth.”
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