For a Bay of Bengal community

THE TRADE MINISTERS of Bangladesh, India, Myanmar, Sri Lanka and Thailand (BIMST) have taken a positive step towards economic cooperation by deciding to work for a Free Trade Area (FTA). At last week's meeting in New Delhi, the Trade Ministers of these countries, around the Bay of Bengal, agreed to set up an inter- governmental officials' group to prepare a concept paper in six months time. The first landmark aimed at in the road map seems to be a Preferential Trade Arrangement which is to be upgraded to an FTA in due course. Though the BIMST-Economic Cooperation forum was launched nearly four years ago, it could not take off because of the Southeast Asian economic crisis. Since Thailand, which mooted the idea and hosts the Secretariat for BIMSTEC, was very badly dented by that crisis, not much progress could be made in the forum. At least now, BIMSTEC, which brings together South and Southeast Asia, must move forward to forge closer trade and economic ties. They have a lot to share, and instead of competing with each other in the same products for the same markets, they can pool their resources and strengths to emerge as a combined force with joint marketing.

Moving towards an FTA is now the done thing. Southeast Asia, through its regional forum, the ASEAN, will have a full-fledged FTA by 2003. But South Asia is still grappling to clinch an FTA for SAARC. In fact, SAARC has got grounded because of the India- Pakistan hiatus. Under these circumstances, it makes sense for Bangladesh, India and Sri Lanka to team up with some Southeast Asian countries in a free trade area. Experts feel that BIMSTEC has all the potential to emerge as a solid trade bloc and could also bridge SAARC and ASEAN. In essence, BIMSTEC will constitute the Bay of Bengal community and contribute to better understanding and security in the region. Viewed from another angle, this group of five can emerge as an influential caucus within the larger Indian Ocean Rim (IOR) grouping, which already boasts a membership of 21 but is unable to kick-start fruitful cooperation. The IOR bands Africa and Central Asia with South and Southeast Asia, stretching up to Australia - linking all countries washed by the Indian Ocean. Unfortunately, this forum too has not really taken off. BIMSTEC could provide a spark to it by taking the lead in evolving a free trade area.

At BIMSTEC itself, there are teething problems. The core Ministerial forum is only at the level of Deputy Foreign Ministers. At least now, the Economic Ministers have seized the initiative to breathe some life into the forum. To ensure that the FTA is realised without much loss of time, it may be worthwhile to think of an informal summit of leaders of these five countries. Only they can ensure that bureaucratic delays and wrangling over minor details do not hold back the process of enhanced economic cooperation. Tourism and civil aviation were identified way back in 1997 as priority areas for cooperation. But nothing concrete has happened on these fronts. In the initial burst of enthusiasm, some members even floated the idea of a regional airline, only for the aviation Ministries and existing national carriers to throw cold water over it. If Thailand and India can take the initiative, it should be possible to break the ice and bring about closer cooperation in specific areas such as trade facilitation and customs procedures. But by far the most important project for BIMSTEC should be the southern link for the trans-Asian Railway. ASEAN and Europe are planning a Singapore- Indochina-China-Russia-Europe rail link and the Chairman of the Indian Railway Board is now a member of the panel to plan the southern corridor from India to Indochina. Without wasting any more time, India must get this done early.

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