Bay of Bengal Initiative for
Multi-Sectoral
Technical and Economic Cooperation (BIMSTEC)
Free Trade Agreement (FTA)
negotiations
- The initiative to establish Bangladesh-India-Sri Lanka-Thailand Economic
Cooperation (BIST-EC) was taken by Thailand in 1994 to explore economic
cooperation on a sub regional basis involving contiguous countries of South
East & South Asia grouped around the Bay of Bengal. Myanmar was admitted in
December,1997 and the initiative was renamed as BIMST-EC. It may be
mentioned that the initiative involves 3 members of SAARC (India, Bangladesh
& Sri Lanka) and 2 members of ASEAN (Thailand, Myanmar). BIMST-EC is
visualized as a ‘bridging link’ between two major regional groupings i.e.
ASEAN and SAARC. BIMST-EC is an important element in India’s “Look East”
strategy and adds a new dimension to our economic cooperation with South
East Asian countries.
- The 2nd BIMSTEC Summit was held on 13 November 2008, preceded
by the 11th Ministerial Meeting and the 13th Senior Official’s Meeting on
11-12 November 2008 in New Delhi, India. The Summit has taken place four
years after the 1st BIMSTEC Summit in Thailand.
- The Summit was attended by the Chief Adviser of the People's Republic of
Bangladesh, H.E. Fakhruddin Ahmed, the Prime Minister of the Kingdom of
Bhutan, H.E. Jigmi Y Thinley, the Prime Minister of the Republic of India,
H.E. Dr. Manmohan Singh, the Prime Minister of the Union of Myanmar, H.E.
Thein Sein, the Prime Minister of the Republic of Nepal, H.E. Pushpa Kamal
Dahal 'Prachanda', the President of the Democratic Socialist Republic of Sri
Lanka, H.E. Mahinda Rajapaksa and the Prime Minister of the Kingdom of
Thailand, H.E. Somchai Wongsawat.
- In conclusion, the leaders expressed their satisfaction at the progress
that has been made in the negotiations for a Free Trade Agreement in trade
in goods and called for their early conclusion. They welcomed the
establishment of the Centres for Energy and Weather and Climate in India and
the BIMSTEC Cultural Observatory in Bhutan. They also expressed concern at
the threat which terrorism poses to the region and satisfy with the
finalization of the BIMSTEC Convention on Combating International Terrorism,
Transnational Organized Crime and Illicit Drug Trafficking.
- The BIMSTEC Trade Negotiating Committee (TNC) has had 19 sessions of
negotiations. The negotiations are spread over the areas of :-
- tariff concessions on trade in goods,
- customs cooperation,
- services and
- investments. At the 19th meeting of the TNC parties reached agreement
on the text of the Agreement on Trade in Goods as well as the text of the
Rules of Origin and the Operational Certification Procedures. Negotiations
would continue on finalising the schedules of concessions and on the
agreements on services and investment.