Bangladesh, Bhutan, India and Nepal (BBIN) signed Monday a historic agreement opening their borders to motor vehicles of each other for both passenger and freight transit.
Transport ministers of countries concerned inked the deal in the Bhutanese capital of Thimphu and declared that it will be effective within next six months under a work plan.
Walid Foyez, senior communications officer of Road Transport and Bridges Ministry, told the FE over phone that the transport minister-level meeting held before the signing ceremony also decided to run a car rally across the four South Asian countries in October.
The planned debut stands for a show of opening up broader horizons for peoples' movement and interaction in multifarious fields, including trade and commerce, in this era of globalisation.
Road Transport and Bridges Minister Obaidul Quader signed the deal titled 'Motor Vehicles Agreement for the Regulation of Passenger, Personal, and Cargo Vehicular Traffic with Bangladesh, Bhutan, India and Nepal (BBIN)' on behalf of Bangladesh.
It is in Bangladesh that the initial accords on sub-regional connectivity were struck during Indian premier Narendra Modi's much-hyped Dhaka mission few days back.
Bangladesh assumes high geophysical importance in such transit arrangement for having maritime gateways through ports on the Bay of Bengal.
Lyonpo DN Dhungyel, Minister of Information and Communications of Bhutan, Nitin Jairam Gadkari, Minister of Road Transport and Highways, and Shipping of India, and Bimalendra Nidhi, Minister of Physical Infrastructure and Transport of Nepal, signed for their respective countries.
A joint statement was also issued on the occasion.
The six-month work plan, according to the statement, will start in July to complete preparation of bilateral agreements/protocols for implementation of the MVA, by July 2015.
Preparatory tasks also include formalisation of the agreement, including the protocols, by this coming August.
The negotiation and approval for the bilateral agreements/protocols will be completed by September next while installation of prerequisites for implementing the approved agreements by December this year.
Among the prerequisites are IT systems, infrastructure, tracking, and regulatory systems.
The staggered implementation will be from October. Scope of trilateral/quadrilateral arrangement will also be explored during the preparation level, sources said.
In the joint statement, the ministers of the four South Asian countries took note of the progress made in formulating and negotiating the MVA for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between the SAARC Member States (known as SAARC MVA).
They recognised the need to accelerate cross-border transport facilitation to "deepen and hasten regional integration through sub-regional measures in line with the directive of our leaders as articulated in the Declaration of the Eighteenth SAARC Summit".
They recalled their renewed commitment to "substantially enhance regional connectivity in a seamless manner through building and upgrading roads, railways, waterways infrastructure, energy grids, communications and air links to ensure smooth cross-border flow of goods, services, capital, technology and people".
After the signing, Bhutanese Prime Minister Tshering Tobgay flagged off a car rally to drive through Bhutan-Gowahati-Shilong-Sylhet-Benapole-Kolkata route to survey the road.
Sources said survey on several other routes will also be conducted by October next. These are Thimphu-Phuentsholing-Jaigaon-Burimari-Mongla/Chittagong, Kathmandu-Kakarvita/Phulbari-Banglabandha-Mongla/Chittagong, Samdrup Jonhkar (Bhutan)-Guwahari-Shilong-Tamabil-Sylhet-Chittagong, Silchar-Sutarkandi-Paturia Ferryghat-Benapole/Petrapole-Kolkata, Silchar-Saturkandi-Chittagong Port and Agartola-Akhaura-Chittagong Port.
The BBIN MVA was drafted in line with the SAARC MVA which, however, could not be done due to reservation of one member-Pakistan-- in November.
Asian Development Bank Vice President Wencai Zhang was also present at the signing ceremony. ADB facilitates the formulation of the motor-vehicle agreement in the light of Sub-regional Economic Cooperation Trade Facilitation Strategic Framework 2014-2018, endorsed in 2013.
Mr Obaidul Quader in his speech was all-praise for the agreement he termed a landmark to open up enormous economic opportunities in the BBIN region.
The minister expressed the hope that political commitment would play a vital role in this regard. Economist Dr Hossain Zillur Rahman was cautious in welcoming the deal as he said its effectiveness will be realised at the time of taking forward it in different stages.
He expressed the hope that the deal would move forward in right direction by meeting the country's connectivity needs with landlocked Nepal and Bhutan and removing hidden barriers like non-tariff one in trade and business.
"Non tariff barriers like hidden barriers in inter-trade must have to be addressed rightly so that our trade potentials are better exploited," he told the FE over phone.
Transport expert Dr Shamsul Hoque believes the agreement will definitely bring tangible change in people-to-people movement and trade to deal with many hassles which exist with the member-countries, "mainly with India".
He, however, laid importance on taking the deal forward by attaining logical demand of the country, including issues of taxation and benefit of trade and business with member countries.
The BUET professor expressed the hope that the government would take right strategy for the flourishing of the sub-regional trade by playing the card of the country's geographical location and infrastructure facilities well.
"Spirit of this deal is good. This will open door to the member-countries, like ASEAN countries where trade and business within member-countries are more than out of the bloc," he said.
Senior research fellow of the Bangladesh Institute of Development Studies (BIDS) Dr Mohammad Yunus believed that transit will bring economic benefit for Bangladesh. He, however, laid emphasis on doing homework in formalising protocols, standards and operating procedures of the MVA to get profitable economic benefit from it.
"The BBIN deal is an umbrella deal and now we have to do lot of exercise at all levels including the government to reap the benefits during negotiations," he told the FE over phone. Referring to the announcement of making MVA effective early next year, the BIDS economist said full gain from the deal would be available when road and border infrastructure will be ready.
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