Bay of Bengal Initiative (BIMSTEC)

EENI- School of International Business

Subject: The Bay of Bengal Initiative (Bangladesh, India, Myanmar, Sri Lanka, Thailand). Syllabus:

1. Introduction to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
2. The Economic Profile of the BIMSTEC member countries: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal
3. Objectives of the Bay of Bengal Initiative
4. Free-Trade Area of the Bay of Bengal
5. BIMSTEC Framework Agreement
6. International Trade and foreign direct investment (FDI) in the region of the Bay of Bengal Initiative

The aims of the subject “The 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 BIMSTEC's member countries
3. To analyse the process of economic integration (free-trade area) and foreign trade among the Bay of Bengal Initiative member countries

Sample of the subject - The Bay of Bengal Initiative (BIMSTEC):

Description of the Subject: The 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.

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 multi-sectoral cooperation for 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 for 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 international trade, foreign direct investment (FDI), and attract foreign companies to do business with 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 economic, international trade, and foreign direct investment cooperation
2. Progressively liberalise and promote foreign trade in products and services
3. Create a transparent, liberal and facilitative foreign direct investment regime
4. Research new areas and develop appropriate measures for deep cooperation
5. Make easy 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 growth of regional trade in services, the Bay of Bengal Initiative members agrees to enter into negotiations to liberalise trade in services.

Areas of economic cooperation 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 the:

1. Economic Area of the Hindu Civilisation
2. Central Eurasian Economic Area of the Islamic Civilisation
3. Economic Area of the Buddhist Civilisation