As talks on a free trade agreement between members of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is taking long, India has proposed a preferential trade agreement (PTA) with them to foster intra-regional trade.
The idea of a PTA was proposed by Commerce and Industry Minister Piyush Goyal at the BIMSTEC Business Summit here on Wednesday which was organised by CII and Ministry of External Affairs. “Maybe, we can begin with a PTA (preferential trade agreement) if not a full-blown FTA…But let’s examine the realistic possibility and move forward on a fast-track basis,” he said.
BIMSTEC is a grouping of countries in South Asia and SouthEast Asia. Its members include Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The framework agreement on the Bimstec FTA was signed way back in 2004 and since then 22 rounds of negotiations have been held without any conclusive results.
BIMSTEC members should re-examine the priorities of member nations with regards to trade negotiations so that the delayed FTA can be finalised, Goyal said.
There is a need to reassess the reasons behind the delay in the FTA and the members need to come up with a set of cogent recommendations that are acceptable to all seven countries, he added.
Goyal called upon the members to introspect on the current trading relations noting that trade among them is small.
He said that there should be a focus on reducing trade deficit, strengthening of trade facilitation measures to strengthen partnership in e-commerce, digital public infrastructure and better integration of custom borders with the aid of technology. The Minister noted that there is a need for computerisation of border controls, faster clearances of the import-export online application processes which will help in Ease of Doing Business.
Focus should also be on strengthening supply chains, removal of tariff and non-tariff barriers, strengthening of trade facilitation measures by adopting international norms and seamless transport connectivity, the minister added.
India’s total trade with BIMSTEC countries amounted to $44.32 billion in 2023-24. Thailand was India’s largest trading partner within the bloc, with exports worth $ 5.04 billion and imports at $SD 9.91 billion. Bangladesh followed, with exports of $ 11.06 billion and imports of $1.84 billion, creating a trade balance of $9.22 billion in India’s favour.
On Bangladesh, Goyal said, “We are all deeply concerned about the evolving situation in Bangladesh and we wish the people of Bangladesh well and we will convey our best wishes for a smooth transition and bright future for the people of Bangladesh”.