Relevance: GS-2: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

Key Phrases: Bangkok Declaration, 5th BIMSTEC Summit, Motor Vehicle Agreement, 25th anniversary.

Why in News?

• Ministry of External Affairs has said that Prime Minister of India will attend a 5th BIMSTEC summit virtually (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) summit virtually on March 30.
• The summit is going to be held after a gap of almost four years. The summit is being hosted by Sri Lanka in its capacity as the chair of the BIMSTEC.
• BIMSTEC is celebrating its 25th anniversary this year. This year’s summit is expected to focus on expanding economic engagement among its member countries.

About BIMSTEC:

• Origin:
  • The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organization of seven nations of South Asia and Southeast Asia
  • BIMSTEC is an economic bloc that came into being on 6 June 1997 through the Bangkok Declaration.
• Aim:
  • It aims to accelerate economic growth and social progress among members across multiple sectors — trade, technology, energy, transport, tourism and fisheries, agriculture, public health, poverty alleviation, counter-terrorism, environment, culture, people to people contact and climate change.
  • The grouping holds annual meetings hosted by member states based on alphabetical rotation. Sri Lanka is the host nation this time.
• Significance:
  • Nearly 1.5 billion people or 22% of the global population comes under the BIMSTEC. Together, it has a combined gross domestic product (GDP) of $2.7 trillion.
• Sectors:
  • Currently, the organization is involved in 15 sectors. This includes sectors such as trade, technology, agriculture, tourism, fisheries, energy, and climate change among others for sectoral cooperation.
  • A BIMSTEC free trade agreement is under negotiation, also referred to as the mini SAARC.
• Members:
  • BIMSTEC, which now includes five countries from South Asia and two from ASEAN, is a bridge between South Asia and Southeast Asia.
  • BIMSTEC is a regional organization comprising Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar and Thailand.
  • Leadership is rotated in alphabetical order of country names. The permanent secretariat is in Dhaka, Bangladesh.

Relevance of BIMSTEC in Present scenario

1. Economic Factors:
   • Over one-fifth (22%) of the world’s population live in the seven countries around it, and they have a combined GDP close to $2.7 trillion.
   • The Bay also has vast untapped natural resources. One-fourth of the world’s traded goods cross the Bay every year.
2. Synergy with other regions:
   • Better BIMSTEC connectivity can help to improve relations with other regions like south-east Asia.
   • BIMSTEC master plan will also promote synergy with other connectivity frameworks such as the ASEAN master plan on connectivity 2025.
   • A study by Asian Development Bank has identified 167 projects within the BIMSTEC region that can boost connectivity.
3. Tackling Security Challenges:
   • Members of the grouping face several traditional and non-traditional security challenges. Enhanced cooperation can address them effectively.
   • In this regard, National Security Advisors of member countries have met thrice since 2017. Further, the members are collaborating on controlling drug trafficking, facilitating intelligence-sharing, counter-terrorism, coastal security, cybersecurity, etc.
4. Strategic location:
   • The Bay region is a key transit route between the Indian and the Pacific Oceans. Therefore, BIMSTEC as a grouping can help in ensuring freedom of navigation in the waters. It can also help in harnessing and sharing the Bay’s natural wealth.
5. Combating the web of uncertainties:
   • The institution can help member states to tackle any future uncertainties. Especially like challenges in climate change, COVID-19 pandemic and balancing US-China relations, etc.

Issues:

• Pending Projects:
  • Work on trilateral India Myanmar Thailand Highway which would eventually extend to Cambodia, Laos and Vietnam is still patchy.
  • The 2015 Indian Proposal for trilateral motor vehicle agreement to facilitate seamless movement of passengers and cargo among the three countries is pending.
• Bilateral Issues:
  • A strong BIMSTEC presupposes cordial and tension-free bilateral relations among all its member-states. This has not been the case, given the trajectory of India-Nepal, India-Sri Lanka, and Bangladesh-Myanmar ties in recent years.
• Uncertainties over SAARC complicating matters:
  • Both Kathmandu and Colombo want the SAARC summit revived, even as they cooperate within BIMSTEC, with diluted zeal.
• China’s increasing footprint in subcontinent:
  • China’s decisive intrusion in the South-Southeast Asian space has cast dark shadows about the cohesiveness of the grouping on issues like trade pacts, investments & security.
• Lack of Resources:
  • Lack of adequate financial and manpower resources constraining the performance of the body.
  • India is the largest contributor and contributes annually about 32% of the budget.
• Rohingya Refugee Crisis:
  • The military coup in Myanmar, brutal crackdown of protesters and continuation of popular resistance have produced a new set of challenges.
• Untapped potential of Business cooperation:
  • It lacks an effort to enthuse and engage the vibrant business communities of these seven countries, and expand their dialogue, interactions and transactions.
• Poor implementation of FTA:
  • BIMSTEC Free Trade Area Framework Agreement, signed in 2004, are yet to bear fruit. In contrast, much has been achieved in Humanitarian Assistance and Disaster Relief and security, including counterterrorism, cyber security, and coastal security cooperation.

Way Ahead

• Reinvent: The grouping needs to reinvent itself, possibly even rename itself as ‘The Bay of Bengal Community’.
• Comprehensive Economic Agreement: BIMSTEC urgently needs a comprehensive Free Trade Agreement to be a real game changer. Ideally it should cover trade in goods, services and investment; promote regulatory harmonization; adopt policies that develop regional value chains; and eliminate non-tariff barriers.
• Political will & Regular Meetings: It should consider holding regular annual summits. Only then will its leaders convince the region about their strong commitment to the new vision they have for this unique platform linking South Asia and Southeast Asia.

Sources: The Hindu BL  BIMSTEC

Mains Question:

Q. Recently there was 25th anniversary of BIMSTEC in which India also participated. In this context discuss about BIMSTEC, its relevance in present times along with challenges?