Kolkata, 13th June 2023: Indian Chamber of Commerce hosted the BIMSTEC conclave, which conducted a session on "International Trade Forum: Opportunities and Barriers" on Tuesday, 13th June which examined the opportunities and difficulties of commerce within the Bay of Bengal region. The goal of this gathering was to improve intra-regional trade and explore prospects for collaboration to achieve economic growth. Honourable dignitary panelists and moderators like Mr Sudip Data, Chairman Indian Chamber of Commerce National Infrastructure Committee; Ms Tashi Wangmo, Hon'ble Secretary, Industry, Commerce & Employment, Bhutan; Mr Md Mosharaf Hossain, Director, BIMSTEC Secretariat; Mr Tandy Wangchuk, President, Bhutan Chamber of Commerce and Industry, Bhutan; Mr Abdul Matlub Ahmad, President IBCCI, Bangladesh; Mr Aye Win, President, UMFCCI, Myanmar; Mr Jashim Uddin, President, FBCCI; Mr Chandra Prasad Dhakal, President, FNCCI, Nepal; Mr Keerthi Gunawardane, President, FCCISL, Sri Lanka; Mr Anand Mohan Mishra, Deputy Director General of Foreign Trade RA Kolkata Ministry of Commerce and Industry; Mr Bhaskar Kalra, Economic-Attache in the Embassy of India in Bangkok, Ministry of Commerce and Industry, and Mr Manish Maharaj, Executive Director, India Thai Chamber of Commerce attended the session.
The intra-regional trade within BIMSTEC was $70 billion in 2021, which is lower than the $600 billion recorded by ASEAN. The BIMSTEC Members have decided to establish the BIMSTEC Free Trade Area Framework Agreement, to boost economic cooperation and promote trade with external partners, in recognition of the need to stimulate trade and draw investments. Participants in the session worked towards the possibility of creating regional value chains and creating a workable agenda to enhance intra-regional trade within BIMSTEC. The discussion also took a view on the frequent use of non-tariff trade restrictions like quotas, import permits, sanitary laws, and prohibitions, among others. Discussions centred on figuring out how to lower these obstacles and improve the business climate to promote more economic cooperation and prosperity among BIMSTEC member nations.
Dignitaries focus on the opportunities and barriers of BIMSTEC:
· For commerce between BIMSTEC member countries, a free trade agreement is essential.
· External and internal border commerce should be prioritised.
· Following WTO regulations, FTA has benefited nations like India and Thailand.
· More testing facilities make it easier for countries to trade commodities that have been tested in their own countries.
· When North-East India gains access to ports, it will undergo a transformation.
· Concentrating on the Trilateral Agreement
· Institutional and People-to-People connectedness is critical for BIMSTEC countries.
· BIMSTEC should also work on long-term visas to facilitate travel, tourism, and trade.
· India spends 15% of its GDP on logistics, but the rest of the world spends roughly 8%, hence India must find measures to cut the proportion.
· BIMSTEC must increase intra-country commerce.
· Foreign investments were difficult to obtain following Covid-19, thus BIMSTEC nations must collaborate to attract FDI.
· More joint initiatives should be developed.
· Boost the institutional foundation.
· Bangladesh is developing its economy and making it more accessible to investment, with an emphasis on infrastructure, commerce, and economic growth, as well as its importance in BIMSTEC.
· Bhutan's economy is strengthening and becoming more dynamic. Foreign investments (tourist, hydropower, etc.) are arriving in Bhutan.
· Bhutan wishes to quadruple its GDP to $5 billion US dollars, improve commercial relations and free commerce with India, and promote liberty.
· BIMSTEC should prioritise policy stability and a stable trading framework, as well as mutual progress. Hard and soft infrastructure must be improved.
· Connectivity of other nation electricity grids, as well as an emphasis on digital payment systems, UPI might be a game changer, similar to the deal between Thailand and India.
· BIMSTEC should focus on developing an investment sector, similar to SAARC, and should have various committees to ensure the organization's integration.
· BIMSTEC must exercise caution in identifying bi-lateral issues and devising strategies to address them. For success, they must also concentrate on political and corporate relationships.
· The presence of a broad customer base for intra-regional trade that states must exploit.
· A Myanmar delegate discusses how the country is a dynamic region that presents opportunities, such as in agriculture. The delegation also discusses the expansion of cross-border trade.
· BIMSTEC Nation members must share their experiences and expertise in order for all members to succeed. They must also prioritise food security, which is critical for all countries.
· The bi-lateral trade pact between India and Myanmar was also mentioned as an example of how to improve ties. The delegation also advised that various chambers of trade collaborate with governments, such as the Indian Chamber of trade and the Ministry of External Affairs.
· The BIMSTEC nation must shift its focus from a traditional commercial model to a regional approach. Also, FTA (Free Trade Agreement) procedures should be expedited.
· Connecting the private and public sectors with the BIMSTEC energy industry.
· Increase B2b and increase information exchange, also need to develop infrastructure (land/waterways). BIMSTEC should also focus on the healthcare sector, skill development and research.
· Nepal and India hydropower agreement of 10,000 megawatt was also talked about by the Nepal delegate.
· Mutual Recognition Agreement with sustainable development goals was also talked about by the delegates.
· The Bhutan delegate mentioned about 100% sustainable renewable energy that Bhutan is striving for. FDI is safe for investors in Bhutan.
· In the panel One Currency for BIMSTEC nations was also suggested.
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