Fast Tracking BIMSTEC Free Trade Agreement

BIMSTEC members should re-examine the priorities of member nations with regards to trade negotiations so that the delayed Free Trade Agreement can be finalized. This was stated by Union Minister of Commerce & Industry Shri Piyush Goyal while delivering his speech at the inaugural edition of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Business Summit organised by Confederation of Indian Industry (CII) in partnership with Ministry of External Affairs, Government of India.

Reasons behind the delay in the BIMSTEC Free Trade Agreement

In his address, Shri Goyal said that there is a need to reassess the reasons behind the delay in the BIMSTEC Free Trade Agreement. He said that the members need to come up with a set of cogent recommendations that are acceptable to all seven countries. He called for the Trade Negotiating Committee and the business community to consider a preferential trade agreement to begin with to foster intra-regional trade and investment and enhance regional competitiveness.

Deeper integration amongst the member nations

Shri Goyal called upon the BIMSTEC members to introspect on the current trading relations noting that trade among the BIMSTEC countries is small. There’s a long way to go before we can achieve its full potential, he said. The Union Minister called for deeper integration amongst the member nations to provide honest feedback and help strengthen trade facilitation and cross-border movement of goods.

Focus on reducing trade deficit

He further said that there should be a focus on reducing trade deficit, strengthening of trade facilitation measures to strengthen partnership in e-commerce, digital public infrastructure and better integration of custom borders with the aid of technology. The Minister noted that there is a need for computerisation of border controls, faster clearances of the import-export online application processes which will help in Ease of Doing Business.

What should the measures be taken?

• The Minister said that there should be a focus on strengthening supply chains, removal of tariff and non-tariff barriers, strengthening of trade facilitation measures by adopting international norms and seamless transport connectivity, essential to unleashing the full potential of trade and investment cooperation among the BIMSTEC Member States.
• Shri Goyal expressed hope in greater integration of startups and entrepreneurs of the seven member countries to provide assistance in investment, trade and tourism.
• He also urged the member nations need to encourage technology and foster agricultural cooperation to secure food security, healthcare and human resource development among each other.
• On Blue Economy, the Union Minister said the member states have a thriving blue economy or demand of ocean products enhancing livelihoods and job creation while preserving marine and coastal ecosystems.
• He further said that regional value chains can add to agricultural and mineral produce to become a developed region.

What is BIMSTEC?

BIMSTEC, or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation is a grouping of countries in South Asia and South East Asia – Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.