 "Photo: Bimstec.org")
Sumith Nakandala, secretary-general of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec), the seven-nation regional grouping, spoke to Subhayan Chakraborty on the under-negotiation Free Trade Agreement (FTA) in merchandise:
What are the major bottlenecks still holding back the FTA, 20 years after it was first proposed?
In 2004, the process of trade negotiation was started and the 19th meeting of the Trade Negotiating Committee was in 2011. In that time, all member-states agreed on a time frame for exchanging of schedules, ministerial meetings. The agreement was that the FTA will be done by the end of 2011 but it didn’t happen because one member didn’t submit their recommendations. I had to convince them personally, after which they gave it by the end of November 2014.
Which country?
I can’t tell you that but when the 20th meeting of the Committee was held in 2015, the entire trade scenario had changed in South and Southeast Asia, and that is where we are stuck.
How do you see the agreement moving on from here?
Again, one member-state wanted to revise the list of Production Specific Rules. Therein lies the problem but we are addressing that. Bimstec is not dead and these differences will be handled.
The agreement is being negotiated based on reducing the number of goods in the restricted list, rather than increasing the number of goods which can be brought under free trade. Why this negative approach?
The Indo-Sri Lanka FTA was also based on a negative list approach. In Bimstec, the final aim is to redefine the negative list and ultimately remove it.
A number of countries have also expressed reservations about negotiations on services. How would you convince them?
A number of countries have also expressed reservations about negotiations on services. How would you convince them?
All nations will have concerns on services. Especially on how to liberalise services or to what extent it can be done, as well as the categories of services. So, that will take some time. But, I’m sure the agreement on investment can go (forward) because, by and large, all countries have liberalised the investment regime in various orders.
What are the strong points of Bimstec as compared to SAARC?
The most positive thing in Bimstec is no political conflicts or disagreements. Also, the South Asian countries (India, Bangladesh, Bhutan, Nepal, Sri Lanka) don’t have bilateral problems with the two South-east Asian (Myanmar, Thailand) ones. And, historically, these nations were linked through trade ties over centuries. That is the strength of this organisation.
