BIMSTEC

Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic Cooperation

Background

On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation). Myanmar attended the inaugural June Meeting as an observer and joined the organization as a full member at a Special Ministerial Meeting held in Bangkok on 22 December 1997, upon which the name of the grouping was changed to BIMST-EC. Nepal was granted observer status by the second Ministerial Meeting in Dhaka in December 1998. Subsequently, full membership has been granted to Nepal and Bhutan in 2003.

In the first Summit on 31 July 2004, leaders of the group agreed that the name of the grouping should be known as BIMSTEC or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

Aims and Purposes

According to the Bangkok Declaration on the Establishment of BIST-EC, the aims and purposes of BIST-EC/BIMST-EC are to create an enabling environment for rapid economic development, accelerate social progress in the sub-region, promote active collaboration and mutual assistance on matters of common interest, provide assistance to each other in the form of training and research facilities, cooperate more effectively in joint efforts that are supportive of, and complementary to national development plans of member states, maintain close and beneficial cooperation with existing international and regional organizations, and cooperate in projects that can be dealt with most productively on a sub-regional basis and which make best use of available synergies.

BIMSTEC was initiated with the goal to combine the 'Look West' policy of Thailand and ASEAN with the 'Look East' policy of India and South Asia. So it could be explained that BIMSTEC is a link between ASEAN and SARRC.  Seven members of BIMSTEC covers 13 Priority Sectors lead by member countries in a voluntary manner namely, Trade & Investment, Technology, Energy, Transport & Communication, Tourism, Fisheries, Agriculture, Cultural Cooperation, Environment and Disaster Management, Public Health, People-to-People Contract, Poverty Alleviation and Counter-Terrorism and Transnational Crimes.

What make BIMSTEC different from other organization would be that BIMSTEC represent one of the most diverse regions of the world, be it, way of life, religion, language, culture, etc. BIMSTEC clearly separates issues of development into 13 Priority Sectors besides focusing only on economic cooperation which make BIMSTEC covers all aspects regarding the word 'developing'.

BIMSTEC provides a unique link between South Asia and Southeast Asia bringing together 1.3 billion people - 21 percent of the  world population, a combined GDP of US$750 billion, and a considerable amount of complementarities. A study shows the potential of US$ 43 to 59 billion trade creation under BIMSTEC FTA.

Regarding economic aspect, BIMSTEC has Trade Negotiating Committee (BIMTEC TNC). The 16th TNC meeting was held during 17-21 March 2008 in India. TNC Meeting is now working on the List of Goods regarding the Framework Agreement that has been signed in 2004. So far, BIMSTEC has been working on the FTA and looking forward to finalise our agreement soon.

Cooperation with ADB

ADB has become BIMSTEC's development partner since 2005, to undertake a study which is designed to help promote and improve transport infrastructure and logistic among the BIMSTEC countries. So far, ADB has already finished the project so called BIMSTEC Transport Infrastructure and Logistic Study (BTILS). The final report of the said study from ADB has already been conveyed to all members and being awaited for the feedback. Other fields of cooperation will be designed later on.

Membership Criteria

Eligibility: Countries seeking membership should satisfy the conditions of territorial contiguity to, or direct opening into, or primary dependence on the Bay of Bengal for trade and transportation purposes.

Procedure: All applications should be submitted in writing to the Chairman of BIMSTEC. The decision on admitting new members will be taken on the basis of consensus by all the BIMSTEC members.

Institutional Structure and Arrangements

The BIST-EC Declaration provides for the following institutional mechanisms:

Chairmanship

BIMSTEC uses the alphabetical order for the Chairmanship. The Chairmanship of BIMSTEC has been taken in rotation commencing with Bangladesh (1997 - 1999), India (2000) Myanmar (2001-2002), Sri Lanka (2002 - 2003), Thailand (2003 – 2005), Bangladesh (2005-2006). Bhutan asked for the skip. So it's turned to India (2006-present).

In 2009, Myanmar will host the 12th Ministerial Meeting and assume the BIMSTEC Chairmanship.