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Hon. Ministers & Representatives of the BIMSTEC Member States,
Secretary General of BIMSTEC
President and Director General of Confederation of Indian Industry
Distinguished delegates,
Good morning,
Permit me at the outset, to congratulate the Government of India and the Confederation of Indian Industry (CII) for organizing this timely initiative of bringing us BIMSTEC members together for the Business Summit 2024.I convey the regrets of my Minister’s inability to be present due to work commitments back home.
Ladies and Gentlemen,
The topic before us today, why the early operationalization of the BIMSTEC Free Trade Agreement will inject fresh momentum to economic integration within the BIMSTEC region, is extremely apt for consideration at this juncture together with its other relevant aspects, in achieving the objectives of regional cooperation of our mandated geographical area.
Asia's rich history and diverse cultures have long been interconnected through trade, diplomacy and shared heritage. Our ancient maritime routes are testament to the longstanding bonds that unite us together. Sri Lanka, strategically located in the Indian Ocean, has been a significant part of these historical exchanges with BIMSTEC Member States, contributing to and benefiting from, the flow of goods, experiences, skills and cultures.
However, despite the geographical contiguity of the member states of BIMSTEC, it remains one of the least integrated regions. While the volume of intra-regional trade in comparison is insignificant at present, there is enormous scope for enhancing economic relations between the member countries.
The regional trade among BIMSTEC countries has increased from USD 4.8 billion to USD 35.96 billion from the year 2000 to 2022 respectively. Over the years, the interdependence on regional trade has increased, but the optimal trade and investment potential of the region is yet to be harnessed.
Sri Lanka is committed to working with BIMSTEC member states to enhance trade relations, investment opportunities and economic integration. By leveraging each nation's strengths and resources, we can collectively achieve sustainable growth and development in our region. Therefore, the establishment of a BIMSTEC Free Trade Agreement will undoubtedly pave the way for a more prosperous and resilient BIMSTEC area.
Even though the Bangkok Declaration of 1997 through which BIMSTEC was established, identified that one of the Grouping’s major objectives is to create an enabling environment for rapid economic development in the region, it has been unable to finalise the Free Trade Agreement. The related Framework Agreement which was signed in 2004, is one of the first legal instruments, covering the areas of tariff liberalization and elimination of non-tariff barriers, trade in services, trade and investment, and trade facilitation. Since the establishment of the Trade Negotiation Committee in the same year, it has consistently met to negotiate these areas, with the support by the Working Groups on Rules of Origin, Services, Investment, Customs Cooperation and Trade Facilitation, and Legal Experts.
Over the past 20 rounds of negotiations, much progress has been made in these sectors. While all member states have sensitivities and concerns spanning these areas, Sri Lanka is pleased to note that the negotiations have consistently engaged in a much-needed spirit of cooperation and compromise, working towards the common goal of establishing this Free Trade Area in our region.
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