One of the core functions of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is promoting free trade and increasing cross-border investments. Trade was identified as one of the six sectors of BIMSTEC cooperation at the grouping’s inception in 1997 in recognition of the important role trade can play in national and regional economic growth. The expansion of intraregional trade between member states can become the cornerstone of their economic cooperation.

BIMSTEC has adopted a twin approach in tackling regional trade constraints. The BIMSTEC Free Trade Area initiative has been specifically planned to help eliminate or minimize the tariff barriers that adversely affect intraregional trade, whereas the parallel trade facilitation program is designed to tackle the nontariff barriers (NTBs) affecting trade in general. The BIMSTEC Trade Facilitation Strategic Framework 2030 provides a structured pathway approach for enhancing the environment for trade facilitation until 2030. The main constraints to improving trade facilitation have been the NTBs that have resulted in higher costs for the trading communities in the member states.

The trade facilitation environment differs significantly among BIMSTEC member countries.

Various international trade facilitation performance indicators suggest India and Thailand have the most advanced facilitation environment in the region, followed by Bangladesh, Myanmar, and Sri Lanka.

Landlocked Bhutan and Nepal are seen as having the least advanced trade facilitation environment at this stage. These differences need to be acknowledged within a common framework approach, whereby proposed strategies apply to all member states to a greater or lesser extent, but with national variations and situations being also taken into account. Despite significant progress in trade facilitation being made in the region over the last decade, national trade facilitation environments remain substantially below those of most developed countries and the market leaders in adjacent regions.

The coronavirus disease (COVID-19) has had a significant impact on the BIMSTEC region.

The pandemic has resulted in a temporary downturn in trade and an increased reliance on automated systems (“process distancing”) for customs clearances in some member states. Although the pandemic is expected to continue affecting the Strategic Framework’s implementation in the shortto medium-term, it also offers a “window of change” opportunity to embrace new approaches and technologies to enhance performance in an evolving trade environment.