India has reiterated
its strong commitment towards proposed Free Trade Area (FTA)
in BIMST-EC Region (Bangladesh, India, Myanmar, Sri Lanka, Thailand-Economic
cooperation). Shri Rajiv Pratap Rudy, Minister of State for
Commerce & Industry, indicated this today in the opening
session of the 4th BIMST-EC Trade/Economic Ministerial
Meeting in Colombo, Sri Lanka. Mr. Ranil Wickremasinghe, the
Prime Minister of Sri Lanka, inaugurated the Meeting, which
is being attended by the Trade/Economy Ministers’ of all the
member countries.
Shri Rudy said
that the proposed FTA would not only contribute to the economic
well being of the people of the region but also strengthen the
bilateral trade, investment and technology links with all the
member countries. He informed that the Group of Experts (GOE),
set up to study the approaches, had recommended the "Negative
List" Approach while moving towards FTA. It would prove
to be more transparent and fast track approach to trade liberlisation,
he said. "Liberlisation of trade in terms of exchange of
tariff concessions has to be accompanied by other measures of
trade facilitation", he said adding "only then we
shall be able to create an environment conducive to the improvement
of efficiency and competitiveness of firms and industries in
the member countries."
The Inter Governmental
Group (IGG) was set up at the 2nd meeting of BIMST-EC
Ministers to prepare a concept paper on possible approaches
towards a Preferential Trade Area leading to a Free Trade Area.
A GOE was set up after that to study in greater details the
pros and cons of the two approaches recommended by the IGG.
India chaired the Group of Experts and two meetings of GOE were
held in New Delhi in January and June 2002. The GOE concluded
that FTA would help in establishing a conducive framework for
intra-regional investment flows and attracting investment from
outside the region.
BIMST-EC is an
important element in India’s ‘Look East’ strategy and adds a
new dimension to our economic cooperation with South East Asian
countries. The group, constituted in 1997, focuses on activities
that facilitate trade, increase investment and promote technical
cooperation among member countries. Six areas were identified
for cooperation, namely, trade and investment, technology, transportation
and communication, energy, tourism and fisheries
