Mumbai, Sept 7 (KNN) Expressing optimism that the BIMSTEC countries will sign agreement on Trade in Goods and Customs Cooperation by 2019, M. Shahidul Islam, Secretary General, BIMSTEC Secretariat invited private sector to take advantage of the regional integration efforts and explore trade and investment opportunities in BIMSTEC countries.

A Panel Discussion on ‘Unlocking BIMSTEC Potential: Trade, Investment and Connectivity’ was held in the city. The Panel Discussion was organised jointly by World Trade Centre Mumbai and All India Association of Industries (AIAI) at WTC Mumbai.

In his video message, Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, said, “BIMSTEC is a great opportunity for people who are living in the region to work together and trade with rest of the world. India’s Prime Minister has recently attended the BIMSTEC Summit in Nepal. We feel that this is a huge market that can emerge for all the member countries in the region. This bloc will make sure that we share ideas and bring new business opportunities for each other.”

Delivering the keynote address for this event, Shahidul Islam said “The world is watching BIMSTEC more closely than ever. There appears to be a growing consensus among member states that BIMSTEC should expedite the finalization of FTA related agreements. I am optimistic that BIMSTEC countries will be able to sign the Agreement on Trade in Goods and Customs Cooperation Agreement within 2019. BIMSTEC Leaders have also agreed to revitalise BIMSTEC Economic Forum and BIMSTEC Business Forum. It will be wise to include All India Association of Industries (AIAI) in BIMSTEC Business Forum.”

Islam invited private sector to take advantage of the regional integration efforts and explore trade and investment opportunities in BIMSTEC countries.

“BIMSTEC Coastal Shipping Agreement and BIMSTEC Motor Vehicle Agreement are expected to open up huge investment opportunities. Private Sector may well gear up for taking the opportunity to investment and thus contributing to their share in BIMSTEC integration. BIMSTEC exporters are eligible for preferential tariffs subject to 35% value addition in one member state or 30% value addition in BIMSTEC region,” he added.

At the Fourth BIMSTEC Summit, Leaders of the member countries have welcomed the offer of Government of India to host the BIMSTEC Ministerial Conclave at the Indian Mobile Congress 2018, being held at New Delhi from 25-27th October 2018 on the theme ‘New Digital Horizon: Connect, Create, Innovate’ and encourage all member states to participate in it, the Secretary General added.

The keynote address was followed by an interactive Panel Discussion moderated by Dr. Prabir De, Professor, Research and Information System for Developing Countries (RIS).

In his remarks, Dr. De said, “The recently held Fourth BIMSTEC Summit in Kathmandu ended with the most forward looking Declaration. The Declaration emphasised on the need to strengthen the institutional structure of the BIMSTEC Secretariat to spearhead regional integration in this bloc, whose collective economic size is set to reach USD 4 trillion.”

Dr. De further remarked that the Bay of Bengal Co-operation is the foundation for the larger Indo-Pacific Co-operation.

Speaking on this occasion, Suresh Kumar, Chief Ship Surveyor, Directorate General of Shipping, Ministry of Shipping, remarked, “BIMSTEC countries will be signing an agreement and a Standard Operating Procedure (SOP) to operationalize the coastal shipping. Coastal shipping is cost effective compared to land and rail transport. Stronger maritime connectivity will spur global and regional value chains.”

Saugata Bhattacharya, Chief Economist, Axis Bank highlighted the significance of regional cooperation in financial services.

He said, “Collaboration in financial services can promote physical connectivity, commercial connectivity and people to people connectivity.”

Specifically, Bhattacharya emphasised on collaboration in credit guarantee, trade credit, swap lines, harmonisation of accounting standards, secure payments mechanism and cross-country insolvency resolution mechanism.

He also suggested the adoption of cutting edge technologies such as blockchain to reduce hassles of documentation in trade credit. BIMSTEC bloc must leverage India’s digital payment system, which is the most cost effective in the world. In order to harmonize financial regulations across BIMSTEC countries, there is a need for institutions such as Financial Stability and Development Council (FSDC), Mr. Bhattacharya concluded.

Earlier in his welcome remarks, Vijay Kalantri, Vice Chairman, World Trade Centre Mumbai and President All India Association of Industries (AIAI) said, “Today, Intra-BIMSTEC trade is hardly USD 40 billion and there is tremendous scope to enhance this. Unlike other regional blocs, member countries in the BIMSTEC are developing countries with huge complementarities.”

For instance, Thailand has competitive advantage in rice production, while India is competitive in information technology. India’s Prime Minister has visualised physical and digital connectivity. Digital connectivity is more important than in this age of digital revolution. BIMSTEC countries must also strengthen air connectivity among their state capitals to promote people-to-people contacts, he added.