The motor vehicle agreement among Bangladesh, Bhutan, India and Nepal
or BBIN will soon come into effect to establish a seamless movement of
passengers and cargo vehicles across the territories, Foreign Secretary
Shahidul Haque said yesterday.
The deal, signed by the transport and communications ministers of
BBIN in the Bhutanese capital of Thimphu in June last year, was supposed
to be operational from January this year. But it has been delayed due
to a hold-up in ratification by the Bhutanese government.
“The BBIN corridor is coming into reality very soon. The approval
from Bhutan is needed to make the agreement operational,” said Haque,
presenting a keynote paper at the quarterly luncheon meeting of the
Metropolitan Chamber of Commerce and Industry in Dhaka.
“BBIN was formed for multimodal connectivity among the four South
Asian nations. I hope sub-regional businesses will get a boost if the
transportation of goods and passengers start under the agreement.”
Under the deal, any member nation of BBIN will be allowed to use the
roads of other members to transport goods and passengers paying fees and
charges, which are to be fixed later.
“The BBIN nations agreed to pay the fees and charges to use the
corridor,” Haque said. He did not specify the fees to be charged for
using the corridor. The BBIN identified 30 transport corridors to be
transformed into economic corridors.
The deal will potentially increase intraregional trade within South
Asia by almost 60 percent and with the rest of the world by over 30
percent, according to a joint statement that was issued after signing of
the agreement.
The infrastructure costs for the four-nation road connectivity would
require an estimated $8 billion. Each government will be responsible
for completing the infrastructures in its territory with its own fund
and with support from donor agencies.
A number of these corridors, which also include bridges, have already either been improved or are under construction.
The corridors, associated routes and their costs have been determined
based on an analysis of patterns of regional and international trade.
The analysis was done by the Asian Development Bank, which has been
pushing for regional connectivity for several years now.
While Haque was speaking on economic diplomacy and connectivity, he
also focused on the potential of Bangladesh if another important
corridor -- Bangladesh, China, India and Myanmar or BCIM -- starts
formal operations.
“This year, India will host the next BCIM meeting while Bangladesh
hosted its second meeting at Cox's Bazar last year,” he said. The BCIM
will be able to connect Bangladesh between two growth centres -- China
and India -- for its geographical location.
Bangladesh can enjoy economic benefits from Myanmar if the Rohingya problem of Rakhine State is resolved, he said.
Ruling out security concerns, Haque said the security of Bangladesh
will be stronger if all the regional and sub-regional countries are
connected by sharing their respective corridors.
“Yes, we have some risks and challenges such as the impacts of
climate change, terrorism and violent extremism, and limitations in
adopting to rapid economic changes as well as evolving interregional
norms, ethics, and practices,” Haque said.
MCCI President Syed Nasim Manzur said history reveals that for
centuries, the Silk Route, stretching across deserts, steppes and
mountains, linked the imperial dynasties of China with Europe.
Chinese rulers used the thoroughfares to expand their power and
influence deep into Asia, said Manzur, adding that the current Chinese
leadership is seriously considering undertaking a gigantic project to
re-create those ancient trade routes and the political and economic
clout that came with them.
“Termed 'One Belt, One Road' China's plan is to construct roads,
railways, ports, and other infrastructures across Asia and beyond to
bind its economy more tightly to the rest of the world,” Manzur said.
“As we have come to know, this ambitious project has two main
components. One arm, the Silk Route Economic Belt, will pass from China
to Europe through Central Asia, and the other, the 21st Century Maritime
Silk Route, will better link China to Southeast Asia, the Middle East,
and Africa along vital sea lanes,” Manzur said.
The project has been included in China's latest five-year plan,
released in late October 2015, and has become a favourite subject of top
leaders, who sell it as an international initiative to foster peace and
prosperity, he added.
“This mega project has numerous economic and diplomatic implications.
Bangladesh's geo-strategic location offers immense opportunities,
provided we can strongly play our role in global economic diplomacy.”
If Bangladesh is to benefit, Bangladeshi business must not be left
behind in recognising and seizing some of the spoils and hence business
needs to be involved in this process, he said.
Besides, the existing agreements and projects are already bolstering
successful regional cooperation and coordination, offering opportunities
to reap the benefits of connectivity, according to Manzur.
