Four agreements likely to be signed in next BIMSTEC ministerial meet

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Nazmul Ahsan
At least four trade agreements are likely to be signed at the upcoming 12th Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) ministerial meeting, scheduled to be held in the Myanmar capital, Nay Pyi Taw, in the last quarter of October, 2009, official sources said.
Enhancing trade and investment through eliminating duties in phases among member countries, is the prime objective of signing the proposed agreements, under the umbrella agreement, the BIMSTEC Framework Agreement, signed in February 2004.
The agreements expected to be signed are-Agreement on Trade in Goods of the Framework Agreement on the BIMSTEC, Agreement on Cooperation and Mutual Assistance in Customs Matters for BIMSTEC Free Trade Area, Agreement on Dispute Settlement Procedure and Mechanism of the Framework Agreement on the BIMSTEC Free Trade Area and Protocol to Amend the Framework Agreement on the BIMSTEC Free Trade Area.
Sources in the commerce ministry said the member countries of the block have already completed negotiations on four agreements ahead of the upcoming ministerial meeting. The trade negotiating committee, comprising representatives from all seven member countries of the pact at its recent 18th TNC meeting, okayed the four draft agreements, they said.
Bangladesh, India, Sri Lanka, Thailand, Myanmar, Nepal and Bhutan are the member countries of the BIMSTEC.
Originally established as BIST-EC-Bangladesh, India, Sri Lanka, Thailand Economic Cooperation - in 1997, the bloc changed its name to BIMST-EC with the joining of Myanmar. The name was again changed keeping the abbreviated form unchanged, following the joining of two land-locked Himalayan nations - Nepal and Bhutan in 2004.
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.
The Commerce Ministry has sent four drafts of the agreements to the Cabinet Division last week for approval from the cabinet meeting, sources said.
"The TNC at its last meeting held in New Delhi finalized all the four agreements after consultation among themselves spanning over five years since mid 2004," a high official in the Commerce ministry told FE.
"The interest of Bangladesh, as least developed country, has been upheld," he added.
Foreign Minister Dipu Moni will lead the Bangladesh delegation, the composition of which is yet to be finalised, at the 12th BIMSTEC ministerial meeting.
"The exact date for ministerial meeting would be fixed within the next week," a high official in the ministry of foreign affairs told the FE.
"The trade volume along with investment in the member countries would be increased manifold," he added.
According to the negotiated draft of Agreement on Trade in Goods of the Framework Agreement on the BIMSTEC, duty reduction among member countries will begin from July 1, 2010.
Three developing member countries of the trade block--India, Sri Lanka and Thailand, will implement hundred per cent duty exemption facility for products originating from four LDCs-Bangladesh, Nepal, Bhutan and Myanmar, to their markets, by June 30, 2011.
On the other hand, according to the same agreement, LDCc falling under the trade pact will give the similar duty facility to the developing member countries by June 30, 2013.
The duty reduction will be implemented as per the 'negative' list concept, the draft said.
The Article 11 of 21 draft agreement has included anti-dumping measure, while Article-12 elaborated issues relating to the subsidies and countervailing measures.
The agreement has identified technical barriers to trade and ensured elimination of barriers through different ways.
On the other hand, Agreement on Cooperation and Mutual Assistance in Customs Matters vowed to address customs offences and customs fraud, simplified customs related formalities and harmonized customs procedures.
The Agreement on Dispute Settlement Procedure and Mechanism of the Framework Agreement on the BIMSTEC FTA has refereed to Arbitral Tribunal to address dispute in customs matters, sources said.