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 –

1. To come out with an actionable plan for improving the overall business environment, which is both sustainable and inclusive
2. Identify potential sectors of collaboration and engaging industry
3. 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.