Background : 

As stipulated in the Bangkok Declaration of 1997, one of the major objectives of BIMSTEC is to create an enabling environment for rapid economic development in the region. In BIMSTEC's early days, promotion of intra-regional trade and investment dominated the activities of the organization. A robust institutional mechanism comprising Trade/Economic Ministerial Meeting (TEMM), Senior Trade/Economic Officials' Meeting (STEOM), and Trade Negotiating Committee (TNC) Meeting together with its various Working Groups was put in place to pursue trade and investment related cooperation among Member States. Side by side, BIMSTEC Business Forum (BBF) and BIMSTEC Economic Forum (BEF) were established to allow private sector inputs in BIMSTEC's trade and investment related activities.

BIMSTEC's economic cooperation agenda saw a major breakthrough with the signing of the Framework Agreement on BIMSTEC Free Trade Area on 08 February 2004, which envisioned liberalization, promotion and facilitation of trade in goods and services, investments as well as broader economic cooperation. The BIMSTEC Trade Negotiating Committee (TNC) was also set up with the task of negotiating the constituent agreements of the BIMSTEC FTA.

Institutional Mechanism of the Sector: Trade, Investment and Development Sector of BIMSTEC has a well-defined institutional mechanism to carry out its function.
 

BIMSTEC Free Trade Area (FTA):

The Framework Agreement on the BIMSTEC Free Trade Area was signed in Phuket, Thailand on 08 February 2004 and came into force on 30 June 2004. Article 2 of the Framework Agreement outlines the following areas to be covered by the “Comprehensive Free Trade Area (FTA)”:

• Progressive elimination of tariffs and non-tariff barriers in substantially all trade in goods
• Progressive liberalization of trade in services with substantial sectoral coverage
• Establishing an open and competitive investment regime that facilitates and promotes investment within the BIMSTEC FTA
• Establishing effective trade and investment facilitating measures, including, but not limited to, simplification of customs procedures and development of mutual recognition arrangements
• Establishing appropriate mechanisms for implementation of the Agreement

Constituent Agreements of BIMSTEC FTA:

The BIMSTEC Trade Negotiating Committee (TNC) was set up with the task of negotiating the constituent agreements of the BIMSTEC FTA. TNC has several working groups under which it is mandated to negotiate the constituent agreements of BIMSTEC FTA. Following agreements are now currently under negotiation:

Agreement on Trade in Goods of the Framework Agreement on the BIMSTEC Free Trade Area: The text of the agreement has been finalized. However, its annexures including the Rules for Determination of Origin of Goods for Agreement on BIMSTEC FTA and Operational Certification Procedures for the Rules of Origin for the BIMSTEC FTA is currently under negotiation by the Working Group on Rules of Origin. Significant progress has been made during the 3rd Meeting of the BIMSTEC Working Group on Rules of Origin, which was held virtually in Dhaka on 25 March 2025.

Agreement on Cooperation and Mutual Assistance in Customs Matters for the BIMSTEC Free Trade Area: This agreement is currently under negotiation by the Working Group on Customs Cooperation. Significant progress has been made during the 3rd Meeting of the BIMSTEC Working Group on Customs Cooperation, which was held virtually in Dhaka on 02 December 2025.

Agreement on Dispute Settlement Procedures and Mechanism of the Framework Agreement on the BIMSTEC Free Trade Area: Working Group on  Legal Experts has negotiated and finalized the draft text of this Agreement.

Agreement on Trade in Services of the Framework Agreement on the BIMSTEC Free Trade Area: 08 rounds of negotiations have already been held by the Working Group on Trade in Services. 

Agreement on Investment of the Framework Agreement on the BIMSTEC Free Trade Area: 08 rounds of negotiations have already been held by the Working Group on Investment. 

Agreement on Trade Facilitation for the Framework Agreement on the BIMSTEC Free Trade Area: 03 rounds of negotiations have already been held by the Working Group on Trade Facilitation. Significant progress has been made during the 3rd Meeting of the Working Group Trade Facilitation which was held virtually on 19 March 2025 in Dhaka.

Private Sector Engagements:

BIMSTEC Business Forum (BBF): The BBF was formed by the representatives of private sector of BIMSTEC Member States in March 1998 to enhance private sector cooperation among the Member States of the BIMSTEC region in identified sectors, sub-sectors and projects. 

BIMSTEC Economic Forum (BEF): The BEF was formed in 1998 to promote Government-Private sector cooperation among the Member States. 

BIMSTEC Chamber of Commerce and Industries (BIMSTEC CCI): A proposal is under consideration to establish a BIMSTEC Chamber of Commerce and Industries in order to rejuvenate private sector participation in BIMSTEC process. Bangladesh prepared a draft Concept Note on BIMSTEC CCI and member States are working to finalize it soon.

Other activities/ Publications:

• In December 2022, Asian Development Bank (ADB), in collaboration with the BIMSTEC Secretariat has published a report titled “BIMSTEC Trade Facilitation Strategic Framework 2030”.
• The Indian Council for Research on International Economic Relations (ICRIER), New Delhi in collaboration with ADB and Ministry of External Affairs, Govt. of India hosted the First “Trade Facilitation Capacity Building Programme” in India from 7 to 20 May 2023.
• BIMSTEC Business Conclave & Expo was organized by the Ministry of External Affairs, Govt. of India and Indian Chamber of Commerce (ICC) on 13-15 June 2023 at Kolkata.
• Ministry of External Affairs of the Government of India in association with Confederation of Indian Industries (CII) hosted the 1st BIMSTEC Business Summit in New Delhi on 06-08 August 2024.
• A BIMSTEC Capacity Building Program on the Design and Management of the Authorized Economic Operator (AEO) was held in New Delhi, India on 18-20 June 2024. It was organized by Asian Development Bank in collaboration with CBIC India and the BIMSTEC Secretariat.
• Asian Development Bank, in collaboration with BIMSTEC Secretariat organized a Capacity Building Program on Cross-border Paperless Trade and Digital Trade Facilitation for BIMSTEC in Bangkok, on 21-23 January 2025.
• Indian Council for Research on International Economic Relations (ICRIER) in collaboration with Asian Development Bank (ADB), organized the “2nd Trade Facilitation Capacity Building Program” in New Delhi, India, on 18-29 March 2025.
• Asian Development Bank, in collaboration with BIMSTEC Secretariat organized a Capacity Building Workshop for BIMSTEC on Improving Transit Systems was held in Hanoi, Vietnam, on 20-23 May 2025. It enabled sharing of best practices of ASEAN in transit system.
• Asian Development Bank, in collaboration with BIMSTEC Secretariat organized a Consultation Workshop to Explore the Possibility of Establishing a Cross-Border Digital Payment amongst the BIMSTEC member State, in Kathmandu, Nepal, on 30-31 July 2025. ADB prepared a final report based on the discussions of the workshop.
   

Sub Sector: Blue Economy

The inclusion of Blue Economy as the sub-sector of Trade, Investment and Development Sector of BIMSTEC led by Bangladesh has been approved by the 19th BIMSTEC Ministerial Meeting held on 09 March 2023. After receiving nominations from all member States, the expert group has been formed. Bangladesh prepared a draft Plan of Action on Blue Economy which is expected to be finalized during the 1st Meeting of the BIMSTEC Expert Group on Blue Economy, proposed to be held in April 2025.

Work on Progress:

BIMSTEC Expert Group on Fiscal and Monetary Policy: During the 20th BIMSTEC Ministerial Meeting held on 03 April 2025, the Concept Note on establishing a BIMSTEC Expert Group on Fiscal and Monetary Policy has been approved. In line with the Concept Note, an Expert Group will be formed soon to prepare a Plan of Action.

BIMSTEC Expert Group on Women Development: There is a proposal to establish a BIMSTEC Expert Group on Women Development, which will function to mainstream women-led and women-centric developmental perspectives into BIMSTEC’s regional cooperation Agenda.
 

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