POTENTIALS OF TRADE COOPERATION AMOMG THE BIMST-EC COUNTRIES

This article examines the potential for trade cooperation among the member countries of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). It analyzes the economic rationale for a BIMSTEC Free Trade Area (FTA), which was under negotiation at the time. The study assesses the existing patterns of trade among the member countries, noting that intra-regional trade remained at a very low level. The research then explores the potential for trade creation by identifying areas of economic complementarity among the member states. The paper argues that BIMSTEC, by bridging the regions of South and Southeast Asia, offers a unique opportunity to create a new and dynamic economic space. The analysis concludes by identifying the key challenges to realizing this potential, including the need to improve transport connectivity and to overcome non-tariff barriers, and calls for strong political commitment to drive the integration process forward.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was created with the ambitious goal of bridging South and Southeast Asia. This paper provides a detailed analysis of the potential for trade cooperation within this new regional grouping. The study begins by outlining the economic profiles of the member countries and the very low baseline of intra-regional trade, which highlights the immense untapped potential. The core of the article is an analysis of the potential for trade creation based on the economic complementarities of the member states. It argues that the diverse economic structures of countries like India, Thailand, and Bangladesh create significant opportunities for mutually beneficial trade in a wide range of goods and services. The paper then focuses on the ongoing negotiations for a BIMSTEC Free Trade Area. It examines the proposed framework and discusses the key challenges that need to be overcome, such as the formulation of acceptable rules of origin and the need to address the concerns of the smaller and least developed economies within the group. A central argument is that the success of the FTA will depend critically on parallel investments in physical connectivity, including the development of road, rail, and maritime links that can transform the Bay of Bengal into a truly integrated economic region. The paper concludes with an optimistic assessment of BIMSTEC's potential, framing it as a vital new avenue for regional cooperation that could help to accelerate the economic growth of all its members.