In an address at the recent BIMSTEC Business Summit in New Delhi, Union Minister Piyush Goyal underscored the critical need for renewed efforts and strategic reassessment in advancing the region’s trade relationships. The event, organised by the Confederation of Indian Industry (CII) and Ministry of External Affairs, brought together key stakeholders, including ministers and business leaders from BIMSTEC countries, to deliberate on enhancing economic cooperation.
“I am indeed grateful to the Confederation of Indian Industry (CII) for organising this event. It provides us with a valuable opportunity to assess the current state of our trading and business relationships within the BIMSTEC region,” Goyal began, highlighting the importance of such gatherings in fostering dialogue and collaboration.
Reflecting on the discussions, Goyal noted the overwhelming consensus on the need for a free trade agreement (FTA) among BIMSTEC nations. “I’ve been listening attentively to the comments from various distinguished speakers, including ministers and excellencies. It’s evident that there is a burning desire among all BIMSTEC countries to foster greater trust and engagement, with many expressing interest in pursuing a free trade agreement (FTA).”
The Minister pointed out that despite 22 rounds of negotiations, significant progress towards a BIMSTEC FTA has been elusive. “Nearly every speaker has highlighted the importance of an FTA, which brings me to some fundamental questions regarding our current position and the possibilities of making this FTA a reality,” he remarked. “I understand that there have been 22 rounds of negotiations so far.
“The last negotiation took place six years ago, which clearly indicates that it’s time for a thorough review, whether at the ministerial level, the negotiating team level, or the secretary level,” Goyal stressed.
Identifying potential obstacles, Goyal mentioned non-tariff barriers, trade barriers, regional FTAs, and current trading practices as factors that may be hindering progress. “We must consider whether non-tariff barriers or trade barriers are hindering normal trade, causing reluctance among countries to commit to a BIMSTEC FTA. Other regional FTAs and their potential impact on the BIMSTEC region could also be a factor, as well as current trading practices and preferences.”
Calling for active participation from the business community, Goyal urged them to provide honest feedback to shape the future of the FTA. “I urge business leaders to provide honest feedback. If the business community of these seven trading partners decides that they want to move forward with an FTA, it will give us, as political leaders, the direction and support needed to make it happen. CII is well-placed to lead this initiative.”
Goyal proposed a pragmatic approach to reinvigorate the process, suggesting that a Preferential Trade Agreement could be a feasible first step. “Perhaps we can take this on as a task between now and next year, working to develop coherent recommendations on the next steps that would be acceptable to all seven countries. We could consider starting with a Preferential Trade Agreement if a full-blown FTA seems unattainable at this point.”
He also emphasised the need for a fast-track approach to explore realistic possibilities within the BIMSTEC framework. “Let’s examine the realistic possibilities and move forward on a fast-track basis, re-evaluating our strategies and exploring new opportunities within the BIMSTEC framework.”
The BIMSTEC Business Summit, with its focus on strengthening regional cooperation and economic integration, serves as a pivotal platform for addressing key issues and charting a collaborative path forward. Minister Goyal’s remarks set a constructive tone for future engagements and negotiations, aiming to unlock the full potential of the BIMSTEC region.
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