In what can be a major boost to sub-regional connectivity, Bangladesh, Nepal and India held a meeting at New Delhi to finalize a MoU for the implementation of the Bangladesh Bhutan India Nepal Motor Vehicle Agreement (BBIN-MVA). Once implemented, the agreement will provide seamless movement of passengers and goods among the three countries in eastern South Asia.

Bhutan, which was among the four countries that had initially signed the landmark agreement in 2015, participated as an observer and is unlikely to proceed with the agreement, at least for now, due to its own environment and sustainability-related concerns. The three other nations, however, decided to go ahead with the agreement.

South Asia, one of the world’s most populous regions, still remains one of the least economically connected parts of the world,  lack of connectivity being among the key reasons. In the last few years, New Delhi rigorously pushed for greater regional integration, aiming to boost intra-regional trade and commerce by enhancing connectivity. 

“India’s Neighbourhood First Policy, at the instance of PM (Modi), accords the highest priority to our relations with Afghanistan, Bangladesh, Bhutan, Nepal, Maldives, Myanmar, Pak & Sri Lanka. It is these countries, with the exception of Pak, that we work most closely with,” Indian Foreign Secretary Harsh Vardhan Shringla said on Monday.   

During the meeting on Monday, the first since the outbreak of the pandemic, three countries discussed  “the Passenger and Cargo Protocols that are essential to operationalize the BBIN Motor Vehicles Agreement (MVA) for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between Bangladesh, Bhutan, India, and Nepal,” a statement released by the Ministry of External Affairs Ministry said. 

“Operationalising the MVA by concluding the Passenger and the Cargo Protocol will help realize the full potential of trade and people-to-people connectivity between the BBIN countries by fostering greater sub-regional cooperation,” the statement added. 

The implementation of the agreement will likely increase regional trade by almost 60 percent within South Asia, estimated the World Bank, which had earlier expressed interest in supporting regional infrastructure development. 

The delegates agreed on specific steps and timelines to expeditiously finalize the Passenger and Cargo Protocols for the implementation of the BBIN MVA. The Asian Development Bank (ADB) provided technical and knowledge support to the meeting.

(SAM)