 "BIMSTEC logo, (Photo: Wikipedia)")
BIMSTEC logo, (Photo: Wikipedia)
The seven countries in the Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) must finalise the regional free trade agreement (FTA) in phases for faster implementation, a study released by the Confederation of Indian Industry (CII) on Tuesday said. It added that the FTA may lead to poverty reduction in the region.
In 2004, BIMSTEC concluded the Framework Agreement on the BIMSTEC Free Trade Area. The Framework Agreement encouraged the establishment of effective trade and investment facilitating measures, including simplification of customs procedures and development of mutual recognition arrangements, among others.
However, some components of it are still being negotiated and are incomplete. A Trade Negotiation Committee has been established to take this forward.
“Early operationalisation of the BIMSTEC FTA will result in tremendous benefits to the countries of BIMSTEC,” CII said in the study released at the BIMSTEC Business Summit in New Delhi.
“While facilitating trade and investment in the region, an FTA will support growth and poverty reduction,” it added. “A phase-wise FTA can be considered for fastest implementation as and when discussions are concluded on these specific areas.”
The study also said that BIMSTEC countries have built a range of bilateral and multilateral free trade agreements. India already has FTAs with different countries of the grouping and other countries also enjoy free trade agreements with other members.
“However, the South Asian members of BIMSTEC, apart from India, do not have existing FTAs with its ASEAN members, thereby creating a gap in trade relations that a BIMSTEC FTA can meet,” CII said.
It added that since a BIMSTEC FTA may take some time for full implementation, an “early harvest agreement” may be considered with the lowering of tariffs among the members.
The study also added that BIMSTEC must add more areas of cooperation to its ambit.
“Key suggestions are to expand skill development to leverage the young workforce, evolve methodologies for e-commerce cooperation, boost digital public infrastructure and digital access, and foster women-led development,” it said.
“All of these can be disseminated via best practices followed by member countries, such as women’s participation in economic development in Bangladesh, e-commerce in Thailand, and digital public infrastructure in India.”
Founded in 1997, BIMSTEC consists of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.
First Published: Aug 06 2024 | 8:54 PM IS