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Sri Lanka: BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation

2011/06/01

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, groups together Bangladesh, Bhutan, Burma, India, Nepal, Sri Lanka and Thailand. The seven-country forum aims to achieve its own free trade area by 2017.

Seven countries in the south and southeast Asia on Friday agreed to set up a energy center in India to promote and develop energy grid interconnection, infrastructure and energy efficiency.

Ministers or representatives of seven members of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or the BIMSTECS, who participate in the 2nd BIMSTEC Ministers on Energy's Meeting in plenary in Bangkok, Friday adopted MOA to establish the Energy Center as following the Meeting's agreement within two years as well as to pursue on development renewable energy and grid interconnection program in the region.

Wannarat Channukul, Thailand's Minister of Energy as well as chairman of the meeting said in the opening address that the focus on new and renewable energy can present members of the BIMSTEC with good opportunities and mutual benefits, through stimulating and supporting of project implementation, advanced clean technology research and transfer, information sharing, and capacity building, in such reneweables as biomass, biogas, biofuels, wind, solar and hydro.

With increased population and higher standard of livings, global energy demand will continue to rise. The International Energy Agency or IEA has forecasted that the world's primary energy need will grow by 55 percent by the year 2030, with fossil fuels still remaining the dominant source of energy. Over the past six years, high oil prices have put finanial strain on every economy.

Highlighted agenda at the meeting is to promote for establishment of Energy Center in India to serve member countries in the areas of promotion and development of energy grid interconnection and infrastructure, energy efficiency and investment, capacity building of human resources, technology transfer, information and knowledge sharing, and other energy relevant issues among the members.

Eligibility: Countries seeking membership should satisfy the conditions of territorial contiguity to, or direct opening into, or primary dependence on the Bay of Bengal for trade and transportation purposes.

Procedure: All applications should be submitted in writing to the Chairman of BIMSTEC. The decision on admitting new members will be taken on the basis of consensus by all the BIMSTEC members. Institutional Structure and Arrangements The BIST-EC Declaration provides for the following institutional mechanisms:
ANNUAL MINISTERIAL MEETING WILL BE HELD., which shall be hosted by the Member States on the basis of alphabetical rotation.
Senior Officials Committee, which shall meet on a regular basis as and when required.
A Working Group, under the chairmanship of Thailand and having as its members the accredited Ambassadors to Thailand, or their representatives, of the other Member States, to carry on the work in between Annual Ministerial Meetings.
Specialized task forces and other mechanisms as may be deemed necessary by the senior Officials to be coordinated by Member States as appropriate.
BIMSTEC has thirteen priority sectors cover all areas of cooperation. Six priority sectors of cooperation were identified at the 2nd Ministerial Meeting in Dhaka on 19 November 1998. They include the followings:

1. Trade and Investment, led by Bangladesh 2. Transport and Communication, led by India 3. Energy, led by Myanmar 4. Tourism, led by India 5. Technology, led by Sri Lanka 6. Fisheries, led by Thailand

After the 8th Ministerial Meeting in Dhaka on 18–19 December 2005, a number of new areas of cooperation emerged. The number of priority sectors of cooperation increased from 6 to 13. The 7 new sectors were discussed in the 1st BIMSTEC Summit and there has been various activities to enhance those co-operations ever since. The sectors are as follows,

7. Agriculture, led by Myanmar 8. Public Health, led by Thailand 9. Poverty Alleviation, led by Nepal 10. Counter-Terrorism and Transnational Crime, led by India 11. Environment and Natural Disaster Management, led by India 12. Culture, led by Bhutan 13. People to People contact, led by Thailand
 

ADB has become BIMSTEC's development partner since 2005, to undertake a study which is designed to help promote and improve transport infrastructure and logistic among the BIMSTEC countries. So far, ADB has already finished the project so called BIMSTEC Transport Infrastructure and Logistic Study (BTILS). The final report of the said study from ADB has already been conveyed to all members and being awaited for the feedback. Other fields of cooperation will be designed later on.

BIMSTEC member countries agreed to establish the BIMSTEC Free Trade Area Framework Agreement in order to stimulate trade and investment in the parties, and attract outsiders to trade with and invest in BIMSTEC at a higher level. All members, except Bangladesh because of domestic procedure, became signatories to the Framework Agreement in the 6th Ministerial Meeting, as witnessed by the Prime Minister of Thailand and BIMSTEC’s Foreign Ministers.

Bangladesh later joined the Framework Agreement on 25 June 2004. The Trade Negotiating Committee (TNC) was setup and had its 1st Meeting in Bangkok on 7-8 September 2004. As stated in the adopted Terms of Reference, Thailand would be the permanent chair of TNC although the host country shall be rotated. The chair and each country’s chief negotiator act as TNC’s spokepersons, while TNC’s chairperson will report the result via STEOM to the Trade and Economic Ministerial Meeting. TNC’s negotiation area covers trade in goods and services, investment, economic cooperation, as well as trade facilitations and also technical assistance for LDCs in BIMSTEC. It was agreed that once negotiation on trade in goods is completed, the TNC would then proceed with negotiation on trade in services and investment.
 

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