Bay of Bengal Initiative (BIMSTEC)

The aims of the subject “Bay of Bengal Initiative (BIMSTEC)” are the following:

1. To understand the objectives of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
2. To evaluate the benefits for the BIMSTEC member countries
3. To analyse the economic integration process (free-trade area) and the foreign trade among the Bay of Bengal Initiative member countries

Description: Bay of Bengal Initiative (BIMSTEC).

In 1997 was created the BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation).

1. In 1997, Myanmar joined the BISTEC as a full member; the name was changed to the Bay of Bengal Initiative (BIMST-EC)
2. In 1998, Nepal was granted as observer status
3. In 2004, Nepal acceded to the Bay of Bengal Initiative as a full member
4. Full membership grant to Bhutan in 2003.

Today, the Bay of Bengal Initiative (BIMSTEC) comprises seven members: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal.

The main objective of the Bay of Bengal Initiative is to promote the multi-sectoral cooperation for the economic and social progress of the Bay of Bengal region.

The Bay of Bengal Initiative provides a sole link between the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC) bringing together 1.3 billion people (21% of the world's population), a combined gross domestic product of USD 750 billion and a total trade volume of 59 billion dollars under the Bay of Bengal Initiative free-trade area scheme.

Substantial progress has made in the negotiations on the Free Trade Agreement on trade in products.

The Bay of Bengal Initiative (BIMSTEC) member countries (Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal) agreed to create the Free-Trade Area Framework Agreement in order to promote the international trade, Foreign direct investment (FDI), and to attract to the foreign companies to do business and invest in the Bay of Bengal region.

The main objectives of the Free-Trade Area Framework Agreement of the Bay of Bengal Initiative (BIMSTEC) are to:

1. Strengthen and improve the economic, international trade, and foreign direct investment cooperation
2. Progressively liberalise and promote the foreign trade in products and services
3. Create a transparent, liberal and facilitative investment regime
4. Research new areas and develop the appropriate measures for a deep cooperation
5. Facilitate the economic integration of the least developed countries in the Bay of Bengal region
6. Reduce the development gap among the members

With the view to speeding up the regional trade in services growth, the Bay of Bengal Initiative members agrees to enter into negotiations to liberalise the trade in services.

Economic cooperation areas of the Bay of Bengal Initiative (BIMSTEC).

1. Mutual recognition agreements, conformity assessment, accreditation procedures, and standards and technical regulations
2. Customs cooperation
3. International finance
4. E-Commerce; and
5. Business visa and travel Facilitation

The Bay of Bengal Initiative (BIMSTEC) belongs to:

1. Hindu Economic Area
2. Central Eurasian Economic Area (Islamic Civilisation)
3. Buddhist Economic Area

Indian Free Trade Agreements: Sri Lanka, Thailand, Indonesia, Singapore, ASEAN, South Korea, European Union, New Zealand, Africa-India, Mauritius, Canada, Australia, Gulf Cooperation Council, SACU, SAARC, IORA, APTA, ACU, EFTA, Chile, MERCOSUR, Andean Community...

Thai Free Trade Agreements: India, New Zealand, ASEAN, APEC, Indian-Ocean Rim Association, Mekong Economic Cooperation Strategy, Indonesia-Malaysia-Thailand Growth Triangle, Bay of Bengal Initiative

Economic Corridors related to the Bay of Bengal Initiative region

1. Bangladesh-China-India-Myanmar Economic Corridor
2. Asia-Africa Growth Corridor
3. International North-South Transport Corridor (India-Russia)
4. International Transport and Transit Corridor of the Ashgabat Agreement
5. India-Chabahar (Iran)-Afghanistan Economic Corridor
6. East-West Economic Corridor (Myanmar-Thailand-Laos-Vietnam)
7. Nanning-Singapore Economic Corridor
   1. Pan-Beibu Gulf Economic Zone