The fast implementation of the sub-regional Motor Vehicle Agreement (MVA) is essential for enhancing the connectivity in Bangladesh-Bhutan-India-Nepal (BBIN) sub-region and beyond.
This will not only boost the sub-regional trade and investment but also open greater access to the Indo-Pacific region in the long-run.
Experts, officials and business people made the observations on Wednesday at a policy dialogue on "Connectivity and Trade Facilitation in Bangladesh, Bhutan, India, Nepal (BBIN) Sub-region of the Indo-Pacific."
Some of the participants also underscored multi-modal connectivity to overcome the existing limitation of BBIN MVA, which is a framework agreement on road-based transport.
The vehicular pact opens up scope for seamless movement of passenger vehicles and trade cargos of four countries with each other.
CUTS International, in association with the U.S. State Department, organised the dialogue to share its research findings.
Presided over by Dr Atiur Rahman, chairperson of Unnayan Shamannay, discussants at the opening session described the emerging strategic issues impacting connectivity and trade facilitation in the sub-region.
Taking part in the discussion, ambassador Humayun Kabir, vice president of the Bangladesh Enterprise Institute (BEI), said that Bangladesh always favours of regional and sub-regional cooperation and also believes in connectivity.
"But regional countries are too much preoccupied with national interests, which slows down the process of integration," he added.
He argued the BBIN is a stepping stone for larger integration and people need to understand this.
Mohammda Khairul Alam, assistant trade consultant at Commerce Ministry of Bangladesh also spoke at this session.
In another working session, Dr Paras Kharel, research director of Kathmandu-based SAWTEE, noted the BBIN motor agreement is a road-based transport agreement but provides third-country transit facility.
He said that being a framework agreement, it is essential for developing the protocol in such way so that the implementation of the agreement can be effective.
Salma Akter Khuky, deputy secretary of the road transport and bridges ministry of Bangladesh, said that at present there is no scope for multi-modal connectivity under the agreement.
She added that initially it would be BIN as Bhutan is not fully ready to join due to the environmental concern.
Damchae Dem, founder and chief executive officer of the Bhutan Association of Women Entrepreneurs, argued the Bhutanese people are not against connectivity but they are sensitive to nature and environment.
She also said that roads in Bhutan are narrow and hilly, for which it is not possible to accommodate large-sized motor vehicles.
Dr Sreeradha Dutta, centre head and senior fellow of Delhi-based Vivekananda International Foundation, argued that sub-regional water ways should be utilised for trade to reduce additional burden on roads.
Taking part in the discussion, Rajan Sharma, former president of the Nepal Freight Forwarders Association, noted BBIN motor agreement does not provide any opportunity for small and medium traders as it allows only containerised or box trucks to carry goods.
He said that with electronic sealing and digital vehicle tracking system, exporters or importers have to pay more for their cargo movement.
Pramod Kumar Srivastava, convenor of eastern region chapter of the Association of Multimodal Operators of India, argued that electronic seal and digital tracking enhance the safety and security of the consignments and also reduce the time of delivery.
Mofizur Rahman Sazan, president of the Benapole Customs Clearing Agents Association, said that there should be 24-hour operation facility in the land port where more than 85 per cent of Indo-Bangla bilateral trade took place.
Bipul Chatterjee, executive director of CUTS International, said that it requires modern risk management and digital system to facilitate trade in border points.
Referring to their study findings, he pointed out trade is not the only things going to be positively affected by the motor agreement but social and political benefits are there also.
Manzur Ahmed, former adviser to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), however, termed BBIN motor deal an 'ill-drafted' pact, which failed to accommodate trade-related concern. He suggested inclusion of multi-modal connectivity option in the agreement.
In another working session, presided over by Professor Mustarfizur Rahman, a distinguished fellow of Centre for Policy Dialogue (CPD), speakers focused on gender aspects of trade in the sub-region.
Lawmaker Selima Ahmad, also president of the Bangladesh Women Chamber of Commerce and Industry and Dr Nazneen Ahmed, senior research fellow of Bangladesh Institute of Development Studies (BIDS) spoke at the dialogue.
Among others, Arnab Ganguly of CUTS and Pushpa Chhetri of Bhutan Media and Communication Institute took part in the discussions.
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