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What is the News?
India, Bangladesh and Nepal have finalized a Memorandum of Understanding(MoU) for implementing the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement(MVA).
Note: Bhutan has decided to continue to stay out of the BBIN Motor Vehicles Agreement(MVA).
What is BBIN MVA?
Bangladesh, Bhutan, India and Nepal(BBIN) had signed the Motor Vehicles Agreement(MVA) in 2015 at Thimphu, Bhutan.
Aim: To provide seamless people-to-people contact and enhance economic interaction by facilitating cross border movement of people and goods.
As per the agreement, member countries would allow vehicles registered in the other countries to enter their territory under certain terms and conditions. Customs and tariffs will be decided by the respective countries and these would be finalized at bilateral and trilateral forums.
Assistance: Asian Development Bank(ADB) has been providing technical, advisory, and financial support to the BBIN MVA initiative as part of its assistance to the South Asia Subregional Economic Cooperation (SASEC) program.
Why has Bhutan decided to stay out of BBIN MVA?
Bhutan PM has said that the country’s top priority is to remain “carbon-negative”. That’s why it would not be possible for them to join the MVA as there are serious sustainability and environmental concerns.
Note: Bhutan is the only country in the world that is carbon negative, which means it produces more oxygen than it consumes.
Source: This post is based on the article “Bangladesh, India, Nepal move ahead on motor vehicle agreement project” published in The Hindu on 9th Mar 2022.
