In recent years, regional connectivity has become a buzzword being used by development partners and the media in statistics, research findings and reports. The World Bank, Asian Development Bank and others have concluded from those findings, that it is the key to the development of South Asia, mainly by maximising the use of resources. The World Bank reports that intra-regional trade in South Asia has the capacity to grow over 3.5 times by only removing tariff and non-tariff barriers and ensuring better connectivity in the next five years (Byron 2015). Similarly, the 28 billion USD trade volume of the region has the capacity to grow up to '$100 billion in 2020' by establishing 'operational connectivity, a fully functional South Asia Free Trade Agreement', tackling non-tariff barriers and intra-regional investment encouragement (Byron 2015). ADB predicts South Asian countries to grow at a pace of 6.9% and SE Asian countries at 4.4% and 1.9% in major industrial economies (Rahman 2015).

 

Amid this, when an effort to sign a 'Motor Vehicle Agreement (MVA) for the Regulation of Passenger, Personal, and Cargo Vehicular Traffic' between SAARC member countries could not succeed, a similar deal was signed by four SAARC nations under the banner Bangladesh Bhutan India and Nepal (BBIN). Despite the fact that these countries have inadequate infrastructure facilities including roads, ports, the BBIN transport ministers, in the joint statement signed on 15 June 2015, hope for a new dimension in regional connectivity by establishing seamless cross border movement of all kinds of vehicles. Despite challenges, the four nations are drafting protocols with the target to overcome tariff, non-tariff, trade-related barriers, increase efficiency of the transport system before formally launching both bus and cargo services in January 2016. 

 

The paper, based on this correspondent’s professional experience of the issue, expert interviews and secondary literature review, will focus on what benefits are to be attained by each of the member countries in trade when their economies differ from another and the region has inadequate infrastructure facilities including rail and waterway and also continue to face peace and security concerns. It will also look at the impact of this first BBIN MVA on the SAARC region. 

References

Byron, R.K. 2015, 'Removal of barriers can boost South Asia trade 3.5 times', The Daily Star, 9 October, , accessed 28 October 2015.

Rahman, Md. F. 2015, 'Strong road links in South, Southeast Asia to boost trade: ADB', The Daily Star, 14 October, , accessed 28 October 2015.