BIMSTEC Free Trade Agreement

Source- This post on BIMSTEC Free Trade Agreement has been created based on the article “Shri Piyush Goyal calls for faster negotiations of BIMSTEC Free Trade Agreement” published in “PIB” on 8 August 2024.

Why in News?

Union Minister of Commerce & Industry highlighted the need for member countries and business leaders to reassess priorities regarding the proposed BIMSTEC Free Trade Agreement (FTA).

About BIMSTEC FTA

The Framework Agreement on the BIMSTEC Free Trade Area was signed in Phuket, Thailand on 08 February 2004 and came into force on 30 June 2004.

Aim of the BIMSTEC FTA

Article 2 of the Framework Agreement outlines the following areas to be covered by the “Comprehensive Free Trade Area (FTA)”-
a. Progressive elimination of tariffs and non-tariff barriers in substantially all trade in goods.
b. Progressive liberalization of trade in services with substantial sectoral coverage.
c. Establishing an open and competitive investment regime that facilitates and promotes investment within the BIMSTEC FTA.
d. Establishing effective trade and investment facilitating measures, including, but not limited to, simplification of customs procedures and development of mutual recognition arrangements.
e. Establishing appropriate mechanisms for implementation of the Agreement.

Constituent Agreements of BIMSTEC FTA-

a. Agreement on Trade in Goods of the Framework Agreement on the BIMSTEC Free Trade Area.
b. Agreement on Cooperation and Mutual Assistance in Customs Matters for the BIMSTEC Free Trade Area.
c. Agreement on Dispute Settlement Procedures and Mechanism of the Framework Agreement on the BIMSTEC Free Trade Area.
d. Agreement on Investment of the Framework Agreement on the BIMSTEC Free Trade Area.

Read More- 5th BIMSTEC Summit – Explained, pointwise

UPSC Syllabus: International organisation