BIMST-EC (Bangladesh India Myanmar Sri Lanka Thailand Economic Cooperation)

REPORT OF THE FIRST SENIOR TRADE/ ECONOMIC OFFICIALS MEETING OF
BIMST-EC
New Delhi, 26th April 2000

The First meeting of senior Trade/Economic Officials of BIMST-EC was held on 26th April 2000 in New Delhi, India.

Agenda Item 1: Inauguration of the Meeting

The Meeting was inaugurated by the Chairman, Mr. P.P. Prabhu, Commerce Secretary, Government of India. Welcoming the delegates from the BIMST-EC Countries, he highlighted the vast potential that existed for economic cooperation including trade growth within the region. He expressed the hope that the Meeting would lead to meaningful initiatives this potential. The list of delegates is at Annexure I.

Agenda Item 2: Adoption of Agenda

The Meeting adopted the agenda, which appears Annexure ll.

Agenda Item 3: Progress Report

Member countries exchanged views on the progress in the six identified sectors of cooperation.
Bangladesh, the lead country for the Trade and Investment sector, reported that the Sectoral Meeting on Trade and Investment had been held in Dhaka in November 1999. It was decided that steps should be taken to hold Meeting in various sub-sectors pertaining to trade and investment within 2000. India mentioned that it would be organizing a technical workshop for discussing ways and means of combating diseases and enhancing productivity in the coconut and spices sub-sector. A conference for identifying possibilities of collaboration in the automotive sub-sector will also be hosted by India.

Sri Lanka reported on the Tourism Sector, for which they are the lead country. Sri Lanka said that the Expert Group Meeting on Tourism was held in August 1999 in Colombo. Nepal participated in this Meeting as an observer. An action plan comprising ten areas of cooperation was adopted. It has been decided to observer 2001 as the " Visit BIMST-EC" year. The next meeting of the Expert Group is proposed to be held in May 2000 at which Member Countries are expected to review the progress on the action plan and to decide on the future course of action.

Myanmar reported on the Energy Sector and mentioned that they had set up a national level committee to oversee this cooperation. They informed the Meeting that the Energy Sector Committee of Experts/ Officials Meeting would be held Yangon on 5 -6 June 2000.

The Meeting noted with interest the potential for cooperation in New and Renewable Sources of Energy. India made a presentation in this regard covering wind energy; photovoltaics, solar water heating, bio-mass and bio-gas energy as well as Ocean Thermal Energy Conversion (OTEC). In this connection, India suggested a project for wind mapping to locate areas in Member Countries where wind energy can be exploited. Another project could also study the use of solar lanterns, use of agricultural waste such as coconut fiber as bio-mass etc. India also offered to provide technology free of cost in respect of silk reeling ovens based on gassified wood which would be 60% more efficient than wood, as well as set up demonstration units in Member Countries. Other areas discussed in the Energy Sector included industrial energy efficiency was greed that India would prepare a concept paper on the possible cooperation in the Energy Sector and circulate it before the Sectoral Meeting on Energy to be held in June in Myanmar.

Thailand, the lead country for Fisheries, informed the Meeting that they would hold a Sectoral Meeting on the Fisheries Sector in Bangkok shortly and would inform the Member Countries of the dates. It was decided that aquaculture will also be included in the cooperation in the Fisheries Sector.

India, the lead country for the Technology Sector, made a presentation on the possibilities of cooperation in high technology areas such as remote sensing, satellite communication, composite material technology, computer-aided design and manufacture etc. India agreed to prepare a few areas of cooperation from which a selection would be made by Member Countries. India would then prepare detailed proposals on the basis of inputs received from Member Countries including additional proposals, and send them to identified focal points in the Member Countries. Subsequently, scientists from Member Countries would meet to work on the specific details of implementation including and timeframes.

India also made a presentation on the setting up of a portal for BIMST-EC countries. A copy of the presentation on "cooperation on technology Transfer and Endogenous Technological Capability Building-Synergising the Strength for Common Benefits" was circulated to enable Member Countries to get their views and inputs within a period of six weeks. It was proposed that the servers for the secure portal would be located in India, and would facilitate Member Countries to update their country-specific information directly on the basis of a common format. Member Countries would designate focal points for the upgradation of their information on the portal.

Agenda Item 4: Trade Facilitation issues

(i) Customs procedures
The Meeting noted that the World Customs Organisation (WCO) has adopted the Kyoto Convention for modernising Customs procedures and practices with a view to make the functioning of customs efficient and practices within the BIMST-EC Member Countries, identify the impediments to the trade at the field level and seek uniformity in classification of products at 8 and 10 digit HS level in respect of items which are highly traded between the Member Countries. Each country was requested to prepare a list of highly traded items within the region.
The Meeting recommended that a Working Group on Customs be formed which will examine the possible areas of cooperation as the following:
(a) Identify important/highly traded items and align them at 8 and10 digit HS level with the same/common classification/nomenclature;
(b) Identify and eliminate the various impediments to trade relating to customs procedures and formalities;
(c) Harmonise the customs procedures and practices so as to make them efficient and effective;
(d) Cooperation in valuation procedures, especially for goods commonly traded among member countries;
(d) Identify the problems at the field level and devise strategies for their solution.

(ii) Pre-shipment Inspection (Standards, Testing & Certification):
The Meeting agreed that the common objective should be to strive to achieve international standards. This will help in retaining and enhancing competitiveness of the products of BIMST-EC countries in international markets. The Meeting recommended that there should be a mechanism for exchanging information on standards. A networking arrangement should also be put in place within the Member Countries so that information on conformance assessment procedures in respect of international standards can be exchanged. The modalities of mutual recognition of testing laboratories should also be explored.

(iii) Strengthening the Banking Arrangements:
The Member Countries exchanged views on strengthening the Banking arrangements to facilitate trade & investment as well as tourism. The Meeting recommended that a Meeting of the Central Banks of the Member Countries should be held to identify banking problems including the opening of Bank branches, speeding up and simplification of procedures of banking transactions and flow of foreign exchange remittance. The Meeting may also explore harmonisation of standard rules related to commission, time taken for opening and confirmation of LCs as well other certifications.

(iv) Facilitation of Transportation
For the transportation communication sector, the Meeting noted that the Second Ministerial meeting of BIMST-EC held in Dhaka in December 1998 (Annexure VI to the Joint Statement of the Second Ministerial Meeting - A copy enclosed) had decided that the Lead Country should be the member county holding the Chairmanship of BIMST-EC. The Meeting noted that for all the six sectors, a lead country has been specified which will rotate every three years; on the other hand the Chairmanship of BIMST-EC will rotate annually. The meeting recommended that in view of importance of transport and communication sector, it should be assigned to a lead country. India offered to the Lead Country in this Sector.

(v) Intellectual Property Rights
The Meeting noted that the Member Countries of BIMST-EC are also signatories to the World Trade Organization (WTO) and are thus obliged to adhere to the TRIPS Agreement which stipulates the minimum standards for the protection and enforcement of intellectual property rights in the Member Countries. The Meeting further noted with satisfaction the Phuket Action Agenda and the New Delhi Action plan relating to issues pertaining to institutional linkages between national IP offices, promotion of HRD, networking of enforcement agencies and promotion of public awareness. The Meeting felt that cooperation between the Member Countries should be strengthened in this vital sector. Linkages may be established among the national focal points on IPRs. Initiatives for protection of indigenous knowledge and bio-diversity should be considered. Data bases on indigenous technology should be developed through joint initiatives.

(vi) Mobility of Business people
The issue of mobility of business people was discussed, particularly in the context of facilitation of visas. The Meeting recommended that multiple long-term business visas should be issued as far as possible to businessmen of BIMST-EC countries. The Meeting also recommended that a beginning may be made in this regard and proposed that 20 leading businessmen and industrialists from each Member Country having significant trading relations with the other BIMST-EC Countries be exempted from visas. The Meeting also recommended that each Member Country consider a fast track system for issue of business visas.

(vii) Other matters in trade Facilitation
Member Countries exchanged views regarding establishment of a Preferential Trading Arrangement. The Meeting noted that developing BIMST-EC into a Free Trade Arrangement was mandated at the first BIMST-EC Economic Ministerial Retreat held in Bangkok in 1998, and decided that a Group of Experts may be constituted to examine the modalities for achieving this objective and identifying the advantages/disadvantages which would accrue to Member Countries. The Expert Group should present a report within six months of its formation.
To establish a trade data base for better market access among Member Countries, it was agreed that each Government should nominate an agency within three months to exchange information on import/ export data, tariffs and restrictions on trade among countries in a computerised format. The information may be updated by Member Countries every six months.

Agenda item 5: Promotion of intra - BIMST-EC investment

It was decided that the Member Countries, who have not so far entered into Double Taxation Avoidance Agreements and Bilateral Investment Protection Agreements should explore the possibilities of entering into such agreements amongst themselves.

It was decided that a brochure may be published containing information on investment procedures, regulations and investment opportunities for a better flow of investment within the region. India agreed to prepare a booklet/CD Rom version in this regard with a request to the Member to send the detailed information within three months to it.

Agenda item 6: Consideration of the early operationalisation of the BIMST-EC component of the Trans Asian Railway and Trans Asian Highway projects

The meeting noted the progress of development of Trans Asian Highway and Trans Asian Railways networks within the Member Countries. It was indicated that the ESCAP Committee on Transport, Communication, Tourism and Infrastructure Development which met in November, 1999 in Bangkok had appreciated the work done so far on these projects. It was agreed that a Group of Experts may be constituted to discuss the modalities of implementation.

Agenda item 7: Future Work programme

As decided against individual agenda items.

Agenda item 8: Other matters

Thailand proposed that Meeting may adopt a "terms of reference" to govern its work programme. After detailed discussion the Committee adopted the TOR which is placed at Annexure III. The Trade and Investment functional chart by Thailand was also adopted by the Meeting and appears at Annexure IV.
The Meeting also noted that an Economic Forum has been established in Dhaka in November 1999 as mandated by the Second Ministerial Meeting held in Dhaka in December 1998.

Agenda item 9: Adoption of the Report

The Meeting adopted this report in its sitting on 27thof April, 2000

SECOND MEETING OF THE BIMST-EC TRADE/ECONOMIC
MINISTERS
NEW Delhi, 27th April 2000

AGREED CONCLUSIONS

The Ministers met in New Delhi to review the progress on the initiatives agreed to in their first meeting in Bangkok, to take stock of recent development in the global economic system, and to decide the action agenda for economic cooperation.
The Ministers took note of the recommendations of the Senior Trade/Economic Officials Meeting (STEOM) which had met 26th April, 2000. The report of STEOM is annexed. The Ministers accepted the recommendations of STEOM on the action agenda for economic co-operation and decided as follows:

The countries affected by the global financial crisis were now well on the road to recovery. It was important to push ahead the momentum of recovery through close economic cooperation between the Member Countries by taking advantage of the complimentarities that existed, The action agenda formulated by the STEOM should be implemented by all countries effectively and within agreed timeframes. The private sector in the Member Countries should be closely involved in the implementation of the action agenda.

The rapid changes in the global economic environment driven by technological developments and deregulation and often adversely impacting on fragile economies necessitated close cooperation and frequent consultations to facilitate appropriate responses and policy changes. It was agreed that the Ministers would hold regular consultations on various issues in the multilateral agenda, especially in the WTO.

The Ministers stressed the importance of establishing a clear work programme to implement the shared vision for a Free Trade Arrangement in BIMST -EC region. The Ministers decided to constitute an Inter-Government Group consisting of Officials dealing with international trade to prepare a concept paper on possible approaches towards a Preferential Trading Arrangement leading to a Free Trade Area on the basis of inputs form all Member Countries within a period of 6 months for consideration of the Ministers.

Transport and communication issues are critical to the development of economic cooperation in the region. A cohesive and well coordinated approach to these issues is essential to ensure early implementation of the agreed projects. It was agreed that India would be the lead country for this sector and would convene a meeting of Experts to examine the feasibility as well as the funding options for early implementation of the BIMST -EC component of the Southern Corridors of the Trans Asian Railways and Asian Highways Projects.

Intellectual Property Rights are a major area of concern for developing countries. The Ministers emphasised the need for joint initiatives on the basis of the Phuket Action Agenda and the New Delhi Action Plan to intensify cooperation between the Member Countries and to enable sharing of experiences. Issues such as protection of indigenous knowledge and bio-diversity should be especially addressed in such initiatives. If necessary, such initiatives could be taken up in collaboration with WIPO.

Electronic commerce is another area at the forefront of technological change in international business. It is important that Member Countries keep abreast with developments in this area. It was agreed that India would be the focal point for possible initiatives it this area including the launch of E-BIMSTEC. India will prepare a concept note identifying the issues and potential for cooperation between Member Countries.

The view of the majority was that the existing Ministerial meetings could be combined with the meetings of the Trade/Economic Ministers and held once a year. It was agreed to hold further consultations in this regard.
It was decided that future meetings would be held on a rotational basis alphabetically, with the next meeting to be held in February-March 2001 in Myanmar or Sri Lanka.

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