Editorial

Northeast on the cusp of a paradigm shift

India’s northeast region is poised to become an important hub of seamless connectivity between India, Nepal and Bangladesh with the three countries

Sentinel Digital Desk

India's northeast region is poised to become an important hub of seamless connectivity between India, Nepal and Bangladesh with the three countries finalizing the Memorandum of Understanding to be signed for operationalization of the required Motor Vehicle Agreement (MVA). Sustainable operationalization of the MVA in these three member countries of the BBIN sub-region (Bangladesh, Bhutan, India, Nepal) demonstrating the benefits will be crucial to Bhutan ratifying the agreement subsequently. The two-day meeting held in New Delhi from Mach7-8 discussed the passenger and cargo protocols that are essential to operationalize the BBIN MVA for regulation of passenger, personal and cargo traffic. While official delegations of the three countries participated in the meeting, Bhutan participated as an observer as the Himalayan kingdom has not yet ratified the MVA for its entry into force even though it is one of the signatories of the BBIN MVA. Bhutan, however, has given its consent to the operationalization of the agreement in the other three member countries. The meeting, held for the first time since the outbreak of the COVID-19 pandemic concluded that operationalizing the MVA by concluding the Passenger and the Cargo Protocol will help realise the full potential of trade and people-to-people connectivity between the BBIN countries by fostering greater sub-regional cooperation. When the countries signed the MVA, it was projected that transformation of transport corridors in BBIN into economic corridors has the potential to increase inter-regional trade within South Asia by 60% and the region's trade with the rest of the world by 30%. The MVA was laid on the foundation of general agreement that apart from physical infrastructure, the development of economic corridors within and between the four countries requires the implementation of policy and regulatory measures, including the BBIN MVA, to address the nonphysical impediments to the seamless movement of goods vehicles and people in the sub-region. It was agreed that four countries comprise a dynamic sub-region, which requires efficient land transport connectivity between the concentrations of supply and demand, which are widely dispersed. The joint statement issued by the BBIN countries on June 15, 2015, took note that 30 priority transport connectivity projects with an estimated total cost of over 8 billion US dollars identified for achieving the ambitious connectivity goal, will rehabilitate and upgrade remaining sections of trade and transport corridors in the four countries. These corridors and associated routes were determined based on analysis of patterns of regional and international trade, it adds. The first meeting held in Thimphu that endorsed the BBIN MVA decided to formalize MVA, including the Protocols by August 2015; prepare bilateral (or trilateral/quadrilateral) agreements/protocols for by July 2015; complete negotiation and approval agreements/ protocols, by September 2015 and install the prerequisites for implementing the approved agreements by December 2015; and staged implementation from October 2015. Bhutan backing out from ratification in 2017 over sustainability and environment concerns and delay of over six years speak volumes about the complexities in multilateral negotiations for inter-country movement of cargo and passenger vehicles because of different national regulations in force. To facilitate seamless movement of vehicles, putting in place the mechanism for recognition of transport documents such driving license, insurance papers, pollution certificates, identity documents or drivers and passengers, issues like insurance claims, visa regime is essential but is quite complicated than perceived. Unless the verification process is made flawless and fasts the very objective of ensuring seamless movement will remain unachieved. The BBIN countries cannot ignore armed groups and criminal gangs active in the sub-region sneaking into territories by taking advantage of security loopholes and indulging subversive and criminal activities. Ensuring real-time security coordination among the BBIN countries to deny such elements take any advantage of a simplified travel regime under BBIN MVA protocols will pose a tough challenge in the operationalization of the agreement for seamless movement of vehicles and people which cannot be ignored. The challenges, notwithstanding, the northeast region being strategically located in the BBIN sub-region, stands to gain from fast-tracking of the connectivity projects by India to meet the MVA goals and transform from a landlocked region into a well-connected region. Apart from boosting trade and commerce, seamless movement of people in the sub-region through the northeast will also boost tourism in the region in a big way. Policymakers, traders, stakeholders of the tourism industry taking note of the latest developments around BBIN MVA can help them undertake a comprehensive review to assess their capacities to derive optimal gains from the operationalization of the MVA. The state governments in the region can initiate a series of consultative meetings and training for capacity building of traders, entrepreneurs, exporters, stakeholders in tourism sectors to identify potential areas for expansion of trade, commerce, and business. This will also generate huge employment opportunities. Operationalization of the BBIN MVA will bring about a paradigm shift in economic growth models in the northeast.