Bimstec Summit: Ushering in economic integration between two regions
PRIME Minister Sheikh Hasina returned last night from Myanmar after attending the 3rd Summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, which took place on March 3-4 in the capital Nay Pyi Daw.
Bimstec is an economic partnership involving seven countries in South Asia and South East Asia -- Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. So Bimstec is a bridge between Asean and Saarc.
The idea of Bimstec was conceived by Thailand during the financial crisis in South East Asia in 1997. Thailand looked for a regional economic grouping with the South Asian nations. By 2004, membership increased to seven countries and the organisation was named as the Bay of Bengal Multi-Sectoral Technical and Economic Cooperation (Bimstec).
The aims and purposes of Bimstec include, among others:
* Creation of an enabling environment for rapid economic development;
* Acceleration of social progress in the sub-region;
* Promotion of active collaboration and mutual assistance on matters of common interest.
The decision to set up the permanent secretariat in Dhaka is most welcome. Bangladesh has meanwhile acquired a site in Dhaka to set up the secretariat.
India alone has 1.27 billion people with GDP of $1.5 trillion dollars as of 2013. Although some analysts suspect that India may try to dominate the agenda and the direction of the organisation, cooperation in expanding and integrating regional markets with India has enormous possibilities. Furthermore, the combined resources of India and the six other countries could be harnessed for the benefit of the people of the region.
In other regions, economic partnerships with greater economic power are not uncommon. The first such economic partnership was the 1994 North American Free Trade Agreement (Nafta) between the United States, Canada, and Mexico. Nafta now links 450 million people, producing $17 trillion worth of goods and services.
Bimstec member countries had earlier agreed to establish the Bimstec Free Trade Area Framework Agreement in order to stimulate trade and investment between the parties, and attract outsiders to trade with and invest in Bimstec at a higher level. Thailand has been the permanent chair of Trade Negotiating Committee (TNC). Economists say the potential of $43 billion to $59 billion worth of trade may be generated under Bimstec Free Trade Agreement.
Our prime minister's visit is significant from both bilateral and regional perspectives. At the bilateral level, the Bimstec region forms Bangladesh's immediate strategic environment and signals Dhaka's continued commitment to its eastward foreign policy. The visit provided the prime minister a chance to review bilateral relationship with all the member countries.
From the regional perspective, since the Bimstec summit is the first multilateral heads of governments meeting hosted by Myanmar, Sheikh Hasina's presence at the summit sent a strong message of Dhaka's support to Myanmar's regional leadership role. Myanmar also holds the chair of Asean and Bangladesh's engagement with Asean will receive a boost.
While in Myanmar, the Bangladesh PM's meeting with Indian counterpart Dr. Manmohan Singh was a farewell meeting because Dr. Singh will retire after the April-May elections in India. During his term, Bangladesh and India relations have peaked to a stage in which many positive gains have been achieved in various areas in both countries, although the Teesta water sharing agreement and Land Boundary Agreement could not be put into place because of India's domestic politics.
Since 2009, Bangladesh has reactivated cooperative and beneficial engagement with Myanmar. The prime minister visited Myanmar in December 2011 and met President Thein Sein. Meanwhile, the air-link between the two countries has been restored.
Besides discussing bilateral issues, including border protection and repatriation of Rohingya refugees, with the Myanmar president, the prime minister explored ways to enhance connectivity, energy, trade, and other linkages with Bangladesh. President Sein was scheduled to visit Bangladesh last July/August but could not do so, and the prime minister is expected to renew her invitation to the president. The meeting between our prime minister and the opposition leader Suu Kyi, MP, who has similar family political background to that of the prime minister, was an historic one.
Bimstec stands for deeper regional integration and political stability which are crucial to the prosperity of the member states. The regional institution was established with foresight and enlightened self-interest, and will be able to create expansive relationships among member states.
Finally, the summit not only provides for crafting of stronger cooperative relationships among member states but also envisages stronger bilateral architecture among them. The personal rapport built at the highest political level on the sidelines of the summit presents many political and economic dividends in the long run.
The writer is former Bangladesh Ambassador to the UN, Geneva.
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