BIMSTEC trade push: Security General pledges to accelerate FTA negotiations

Highlighting the immense potential for increased trade within the Bay of Bengal region, Indra Mani Pandey, the fourth Secretary General (SG) of BIMSTEC today urged member states of the BIMSTEC grouping to expedite the negotiation of a Free Trade Agreement (FTA). Addressing the inaugural BIMSTEC Business Summit, held in New Delhi on 6 August 2024, Pandey underscored the need for greater economic cooperation among the member countries.

Commending the Confederation of Indian Industry (CII) for organising the summit and the Indian government for its support, the SG emphasised the significance of such platforms in fostering business-to-business linkages. They also expressed gratitude for India’s proactive role in promoting BIMSTEC cooperation, citing the recent foreign ministers’ retreat as a testament to the country’s commitment.

“The inter-regional trade amongst the BIMSTEC member states is quite low compared to, for example, interregional trade in other regions like ASEAN,” Pandey observed, adding that there is a pressing need to overcome challenges hindering intra-regional trade growth.

While acknowledging the progress made in FTA negotiations, the official expressed disappointment over the delay in concluding the constituent agreements. They called for renewed impetus to expedite the process, aiming to finalise the agreements by 2027, coinciding with BIMSTEC’s 30th anniversary.

Pandey said, "I'm delighted that the ministerial delivery has been scheduled and I'm hopeful that it will provide the refit impetus to the stalled negotiations and we will be able to make some progress. I urge the trade ministers and secretaries to endeavour to conclude the constituent agreements by June 2027 when the BIMSTEC would celebrate its 30th anniversary."

To expedite trade facilitation, the SG proposed delinking the negotiation of trade facilitation and customs cooperation agreements from the broader FTA talks. They also stressed the importance of reviving the BIMSTEC Business Forum and Economic Forum to enhance engagement between governments and the business community.

"While we endeavour to make progress in FTA negotiations. In my view, the negotiation of the trade facilitation agreement and the agreement on cooperation and mutual assistance in customs matters should be delinked from the negotiation of other FTA constituent agreements and should be pursued separately in view of the contribution that these two agreements can make in enhancing intra regional trade," said Pandey at the event.

SG also proposes the establishment of a BIMSTEC office within the CII to effectively follow up on recommendations from the summit. Additionally, he suggested hosting sectoral business events in other member states and creating a dedicated BIMSTEC trade information portal.

The creation of a BIMSTEC Chamber of Commerce and Industry was also advocated as a crucial platform for industry and trade bodies to contribute to regional economic growth.

Sanjiv Puri, President, CII stated that given the strong global trends of energy transition, digital transformation, and supply chain diversification, this is an opportune time for discussing the BIMSTEC FTA. To create a multiplier effect in the region, he highlighted the need for the early operationalisation of BIMSTEC FTA and a more supportive and conducive investment climate.