BIMSTEC with its unique geographic location can play the role of bridging South Asia and Southeast Asia through trade, connectivity and culture.
New Delhi: Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation or what is known as BIMSTEC is all set to have its sixth summit on 4 April 2025 at Thailand. The summit was postponed three times in the past and expectations from the summit are, therefore, very high.
BIMSTEC was set up in 1997 to foster economic and social development among member countries, namely, Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. Its significance lies in the fact that it serves as the direct linkage between South Asian and South East Asian countries through intra-regional collaboration between the Association of South East Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). The geographical contiguity, abundant natural and human resources, rich historical linkages, and shared cultural heritage are some of the unique advantages that BIMSTEC enjoys.
Today, BIMSTEC becomes highly relevant in the backdrop of ongoing global uncertainties in the following ways.
First, BIMSTEC with its unique geographic location can play the role of bridging South Asia and Southeast Asia through trade, connectivity and culture. A stronger regional cooperation may help strengthen economic integration, thereby boost up the regional production and trade.
Second, BIMSTEC member states are surrounded by the Bay of Bengal, which is not only a space to support regional trade and transport connectivity, but also connects international maritime trade routes between the Indian Ocean and the Pacific Ocean. Strengthening regional maritime connectivity is the key to regional trade and development at a time when both Suez and Panama canals are dysfunctional.
Third, BIMSTEC member states are also powerhouse in some of the global products and services such as garments (Bangladesh), digital public infrastructure (India), maritime services (Sri Lanka), consumer durables (Thailand), energy (Nepal and Bhutan), among others. High opportunities for regional value chains, both in gods and services.
Fourth, intra-BIMSEC trade of 6.7 per cent in 2023 has translated into a regional trade of US$ 53.49 billion, up from US$ 46 billion in 2019, indicating growing trade complementarities among the member states. The good sign is that the contribution of each BIMSTEC member state to regional exports has gone up, even marginally for some member states, in 2024 compared to 2019. Greater regional trade through a free trade agreement (FTA) may pave the way for deeper integration in BIMSTEC. When multilateralism does not work, regionalism is the way forward.
Some key achievements
In BIMSTEC, some important instruments were already completed such as the BIMSTEC Agreement on Grid Inter-connection; BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters; MoU on Mutual Cooperation between Diplomatic Academies/Training Institutions of BIMSTEC Member States, etc. There are some important developments in the period between the post-5th BIMSTEC Summit to date, showing energetic engagements. Let me discuss some of them.
BIMSTEC has introduced the BIMSTEC Charter in 2022. Following the 19th Ministerial Meeting in Bangkok in early 2023, several new areas of cooperation emerged. At the Ministerial Meeting, the Ministers considered and approved several key documents emanating from decisions of BIMSTEC Summits, including the Rules of Procedure for Core BIMSTEC Mechanisms; BIMSTEC Sectoral Mechanisms; and BIMSTEC’s External Relations. The Rules of Procedure will be submitted
The 3rd Meeting of the BIMSTEC Expert Group on Maritime Security Cooperation, held in New Delhi on 11 September 2024, has finalised the Draft BIMSTEC Guidelines for Maritime Component of Humanitarian Assistance and Disaster Relief (HADR).
BIMSTEC leaders have asked to initiate the process of drafting the Standard Operating Procedure (SOP) according to the Agreement on Maritime Transport Cooperation for discussion in the Joint Shipping Committee. They have also urged the BTCWG to finalise the Concept Note of the BIMSTEC Framework Agreement on Transit, Transshipment, and Movement of Vehicular Traffic between and among BIMSTEC member states to facilitate the formulation of the draft Framework Agreement. BIMSTEC leaders have emphasised simultaneous negotiation and finalisation of the BIMSTEC Motor Vehicle Agreement.
An action plan
First, the Trump 2.0 is an opportunity for BIMSTEC. The BIMSTEC FTA negotiation requires quick completion. However, BIMSTEC is yet to make any meaningful progress in the reduction of non-tariff barriers; streamlining regulatory frameworks, and harmonisation of standards.
Second, trade and transit facilitations must be given top priority along with energy and digital connectivity. BIMSTEC leaders have urged the Trade Negotiating Committee and its Working Groups to accelerate the finalisation of the BIMSTEC FTA and its constituent agreements including their annexure.
Third, the connectivity plan is ready, but the real implementation is yet to start. The BIMSTEC Secretariat has to be proactive while dealing with connectivity projects. The Secretariat may pick up the maritime sector (e.g. ports, IWT, and shipping) as low-hanging fruit to start with.
Fourth, the Secretariat needs to be adequately resourced and must possess sufficient powers to fulfill its role as a coordinator of activities across BIMSTEC. With increased resources, there is now a need to develop a roadmap for capacity building of the BIMSTEC Secretariat.
Way forward
Global uncertainties are yet to be over, and the BIMSTEC faces several challenges both in economic and non-economic fronts. Regional understanding of global challenges may provide sustainable solutions.
Bangladesh is going to take over the chairmanship of BIMSTEC from Thailand once the 6th BIMSTEC Summit is over. Perhaps, bilateral meetings may get more attention this time than the regional meetings. The much awaited meeting between PM Modi and Prof. Yunus at the sideline may likely to happen.
Although the BIMSTEC has made some tangible progress during 2021 to 2024, the region requires further push to scale up the integration to a higher level. The postponement of the 6th BIMSTEC Summit in past has slowed down the BIMSTEC integration. Bringing it back in the growth path requires heavy lifting of the agenda. Making BIMSTEC with business is going to be the defining task of the leaders. The SAARC may not come back in near term, but the countries should not miss the chance to ride the Bay of Bengal tide.
*Author is Professor, RIS, New Delhi, Views are author’s own.