BIMSTEC: New Asian free trade area up by 2017
The Straits Times
AUG 2, 2004
Bay Of Bengal Grouping
New Asian free trade area up by 2017
Group members India, Sri Lanka and Thailand will lead the way with trade liberalisation by 2012
By Nirmal Ghosh
BANGKOK - Next up: A free trade area to encompass the Bay of Bengal region.
Leaders of seven Asian nations at a summit here have endorsed the start of talks for a free trade pact by 2017, with Thai Prime Minister Thaksin Shinawatra urging them to use their inherent strength to become more than just a ’small blip’ on the world’s radar screen.
It was the first summit-level meeting for the forum known as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec), which groups Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.
In a declaration issued on Saturday, the leaders said talks on freeing up trade and services will start this year and continue next year.
Representing almost a quarter of the world’s population, the forum got off to a shaky start at its inception seven years ago when the East Asian economic crisis stalled its ambitions.
Its leaders now see better days ahead.
’We can see the turning of the economic tide for the Asian century and we must benefit from it,’ Mr Thaksin said in his opening address.
’The danger is that after so long, we run the risk of getting used to life at the bottom.
’Bimstec is the only cooperation framework linking South Asia with South-east Asia. We must find the will and the means to succeed.’
The leaders agreed on steps designed to take forward initiatives which formed the group’s first line of action - transport infrastructure, energy, communications, tourism, trade and fisheries.
They will cooperate on research and development based on resources available from their own rich natural biodiversity, aimed at producing breakthrough affordable drugs, and also agreed to cooperate on energy issues.
Working groups were set up to move the sectoral agenda, with India proposing and obtaining a commitment to form a joint counter-terrorism team that will share intelligence and build joint capabilities.
Among the most-watched leaders present was India’s Dr Manmohan Singh, who was on his first trip overseas as prime minister.
India and Thailand also made progress on the sidelines, agreeing on an early harvest list under the Thai-India free trade agreement.
Under the group’s framework agreed on in a February meeting, the three most advanced members - India, Sri Lanka and Thailand - are committed to trade liberalisation by 2012, with the others following within five years.
