Context:
Union Minister Calls for Accelerated Efforts to Finalize BIMSTEC Free Trade Agreement at inaugural Business Summit.
More on the news
- Confederation of Indian Industry (CII) in partnership with the Ministry of External Affairs hosting the inaugural edition of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Business Summit.
- The first edition of the Business Summit aims to foster greater regional collaboration through robust trade and investment relations among the member countries of the BIMSTEC.
- A Trade Negotiating Committee and the business community called to consider a preferential trade agreement to foster intra-regional trade & investment and enhance regional competitiveness.
The Summit will promote three objectives –
- To come out with an actionable plan for improving the overall business environment, which is both sustainable and inclusive
- Identify potential sectors of collaboration and engaging industry
- Locate project opportunities for greater private sector participation.
What is a Free Trade Agreement?
- It is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
BIMSTEC
- The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization that was established on 06 June 1997 with the signing of the Bangkok Declaration.
- BIMSTEC provides a unique link between South Asia and Southeast Asia, bringing together 1.8 billion people which is about 22% of the world population.
- Initially it is known as BIST-EC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation), the organisation now comprises seven Member States with the admission of Myanmar on 22 December 1997, and Bhutan and Nepal in February 2004.
- Members: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
- The regional trade between BIMSTEC countries has increased from USD 4.8 billion to USD 35.96 billion from the year 2000 to 2022 respectively.