BIMSTEC

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Context:

• BIMSTEC’s Charter comes into force after Nepal’s ratification.

Details:

• The Parliament of Nepal endorsed the charter in the early weeks of April 2024, which allowed the document to come into force this month.

About the charter:

• The seven members of BIMSTEC — Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand — first signed the charter on 30 March 2022 at the fifth BIMSTEC summit held virtually in Colombo, Sri Lanka.
• It came into effect today after Nepal ratified it in April 2024.

Main provisions:

• The charter establishes a legal and institutional framework for cooperation among the seven countries surrounding the Bay of Bengal.
• It highlights the long-term vision and priorities of the member countries.
• It is an important step towards promoting regional cooperation and allowing for agreements to be signed with other countries and regional organisations.
• The document gives the organisation a legal personality.
• Establishes a mechanism for admitting new members and observers, and the criteria of geographical contiguity or “primary” dependence on the Bay of Bengal for trade and transport purposes has been added for admission of new members.
• It enables negotiations and agreements with countries and other regional and international groupings.
• All decisions will be taken by consensus among current members.
• Charter also empowers the BIMSTEC ministerial meeting to set up any further criteria as required.
• The charter also highlights that the leaders’ summit will be held every two years and indicates the procedure for the rotational chairmanship of the organisation.

Challenges:

• Coordination and Implementation: Despite agreements to enhance connectivity, bureaucratic delays and differing national priorities have slowed progress on key infrastructure projects like the BIMSTEC Transport Connectivity Master Plan.
• Geopolitical Tensions: Bilateral tensions between India and Nepal have affected regional cooperation within BIMSTEC. Nepal wants to prioritise SAARC over BIMSTEC. Issues such as cross-border terrorism and territorial disputes have strained relations of countries in south asia , impacting the organisation's ability to foster cohesive regional integration.
• Infrastructure and Connectivity Gaps: The lack of adequate transport infrastructure between BIMSTEC countries hampers trade and connectivity. For instance, inadequate road and rail links between India and Myanmar limit the efficient movement of goods and people, hindering economic integration.
• Security Concerns: Despite the region's vulnerability to natural disasters, limited information sharing and coordination among member states have hampered joint efforts in disaster management. This was evident during the response to major disasters like the 2004 Indian Ocean tsunami and Cyclone Nargis in Myanmar in 2008.
• Institutional Capacity and Resource Constraints: BIMSTEC's Secretariat, headquartered in Dhaka, Bangladesh, operates with limited resources and staffing. As a result, the Secretariat's ability to effectively coordinate and implement BIMSTEC initiatives, such as promoting tourism or facilitating trade, may be constrained by resource limitations.

Importance of BIMSTEC:

• Regional Cooperation:
  • BIMSTEC facilitates regional cooperation among member states such as India, Bangladesh, and Thailand through various summits, ministerial meetings, and working groups. The BIMSTEC region is home to over 1.5 billion people, making it one of the most populous and economically dynamic areas in the world.
• Economic Integration:
  • BIMSTEC promotes economic integration through initiatives like the BIMSTEC Free Trade Area (FTA) negotiations, aiming to reduce tariffs and trade barriers among member states. Intra-BIMSTEC trade reached $82.6 billion in 2019, highlighting the significant potential for increased economic cooperation within the region.
• Strategic Significance:
  • The strategic location of BIMSTEC countries allows for enhanced connectivity and geopolitical cooperation, as seen in projects like India's Act East Policy, which aims to strengthen ties with Southeast Asian nations. The Bay of Bengal is a critical maritime route, with over 80% of the world's seaborne trade passing through its waters.
• Security and Disaster Management:
  • BIMSTEC's Counter-Terrorism and Transnational Crime Cooperation Working Group facilitates intelligence sharing and joint operations among member states to combat terrorism and transnational crime. The Bay of Bengal region is vulnerable to natural disasters, with countries like Bangladesh and Myanmar frequently experiencing cyclones and flooding.
• Cultural Exchange and People-to-People Ties:
  • BIMSTEC organizes cultural festivals, art exhibitions, and academic exchanges to promote cultural understanding and strengthen people-to-people ties among member states. The BIMSTEC region is culturally diverse, with each member state boasting rich traditions, languages, and heritage.
• Infrastructure Development and Energy Security:
  • BIMSTEC member states collaborate on infrastructure projects such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project, aimed at improving connectivity and trade within the region. Energy demand in the BIMSTEC region is growing rapidly, with renewable energy sources like solar and wind playing an increasingly important role in ensuring energy security and sustainability.

Source:

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