Asia - Bay of Bengal Initiative BIMSTEC. Trade investments

Also available in: Comercio Exterior Asia BIMSTEC Affaires Asie BIMST-EC   Negocios Asia BIMST-EC

Course summary Bay of Bengal Initiative BIMST-EC:

Free trade area framework agreement BIMSTEC. Members: Bangladesh, India, Sri Lanka, Thailand, Nepal, Bhutan, Myanmar, ...

On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BIMST-EC (Bangladesh, India, Sri Lanka, and Thailand economic cooperation). Myanmar attended the inaugural June Meeting as an observer and joined the organization as a full member at a Special Ministerial Meeting held in Bangkok on 22 December 1997, upon which the name of the grouping was changed to BIMST-EC. Nepal was granted observer status by the second Ministerial Meeting in Dhaka in December 1998. Subsequently, full membership has been granted to Nepal and Bhutan in 2003.

BIMSTEC (Bay of Bengal Initiative) provides a unique link between South Asia and Southeast Asia bringing together 1.3 billion people - 21 percent of the world population, a combined GDP of US$750 billion, and a considerable amount of complementarities. The BIMSTEC registered a gross domestic product of 750 billion U.S. dollars and a trade volume of 33 to 59 billion dollars under the BIMSTEC free trade area scheme.

The BIMSTEC comprising seven members: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal aimed at promoting multi-sectoral cooperation for economic and social progress of the region.

BIMSTEC is a link between ASEAN and SAARC.

Considerable progress has been made in the negotiations on the BIMSTEC Free Trade Agreement for trade in goods. BIMSTEC is an important part of the wider Asian community.

Example of the course BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation):

BIMSTEC member countries agreed to establish the BIMSTEC Free trade area Framework Agreement in order to stimulate trade and investment in the parties, and attract outsiders to trade with and invest in BIMSTEC at a higher level. All members, except Bangladesh because of domestic procedure, became signatories to the Framework Agreement in the 6th Ministerial Meeting, as witnessed by the Prime Minister of Thailand and BIMSTEC’s foreign Ministers.

Objectives of the  BIMSTEC Free trade area Framework Agreement:
- strengthen and enhance economic, trade and investment cooperation among the Parties;
- progressively liberalize and promote trade in goods and services, create a transparent, liberal and facilitative investment regime;
- explore new areas and develop appropriate measures for closer cooperation among the Parties; and
- facilitate the more effective economic integration of the least developed countries in the region, and bridge the development gap among the Parties.

With the view to expediting the expansion of trade in services, the Parties agree to enter into negotiations to progressively liberalise trade in services with substantial sectoral coverage through a positive list approach.

Areas of Economic Cooperation
- Mutual Recognition Arrangements (MRAs), conformity assessment, accreditation procedures, and standards & technical regulations;
- Customs cooperation;
- Trade finance;
- E-commerce; and
- Business visa and travel facilitation.

Topic: Globalization and regionalization

Bay of Bengal, Initiative, BIMSTEC, Asia, Trade, Investments, Free trade, Area, Framework, Agreement, Members, Bangladesh, India, Sri Lanka, Thailand, Nepal, Bhutan, Myanmar