NEW DELHI: A meeting of the trade negotiating committee of the seven-nation grouping Bimstec (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) to revive a proposed free trade deal failed to reach a consensus, after India’s proposal to revise tariff cuts decided a decade ago was opposed by other members, especially Thailand.
The trade officials of India, Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar and Thailand met in Bangkok from 7-9 September.
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A Indian government official, with knowledge of the negotiations, said that while India is not contesting the modalities or the formula that drives negotiations, it suggested the need for fresh offers for tariff cuts in goods as those made 10 years ago do not hold good at present.
“During negotiations, India proposed to make fresh offers on schedules. While most members do not have a problem, Thailand opposed the proposal holding that if every country reopens its offer, it will lead to endless negotiations. But India insisted that in 10 years’ time, profiles and competence of industries have changed,” a government official said speaking under condition of anonymity.
The official further said that once the record of the discussion is circulated, India will send its formal reply.
While Bimstec has been an under-performer, as the same countries are also engaged under more vibrant groupings, such as the South Asian Association for Regional Cooperation (Saarc), Association of Southeast Asian Nations (Asean) and the Regional Comprehensive Economic Partnership (RCEP), no member is ready to call it quits.
Ram Upendra Das, a professor at the Research and Information System for Developing Countries (RIS), said that India is right to demand fresh offers to be made since the regional economic scenario has changed a lot in the last 10 years. “India attaches high importance to Saarc, and a lot of milestones have been achieved within the grouping. RCEP is also moving fast with an agreement on modalities. In such a scenario, negotiations under the Bimstec need to pick up to keep pace with other engagements,” he added.
The initiative to establish Bangladesh-India-Sri Lanka-Thailand Economic Cooperation (Bistec) was taken by Thailand in 1994 to explore economic cooperation on a sub-regional basis involving contiguous countries of South East and South Asia grouped around the Bay of Bengal. Myanmar was admitted in December 1997 and the initiative was renamed as Bimstec.
