• A meeting of India, Bangladesh, and Nepal on the BBIN Motor Vehicles Agreement (MVA) was held at New Delhi on March 7-8. Bhutan participated in the meeting as an observer.

• The meeting was held to discuss the passenger and cargo protocols that are essential to operationalise the BBIN Motor Vehicles Agreement (MVA) for the regulation of passenger, personal and cargo vehicular traffic between Bangladesh, Bhutan, India and Nepal, signed on June 15, 2015. 

• This was the first meeting of the group since the outbreak of the COVID-19 pandemic. The previous meeting was held in February 2020 in New Delhi.

• Recalling the commitments made at the highest level for implementation of the BBIN MVA, the delegations expressed their desire to sign the MoU at the earliest to give momentum to the implementation.

• The countries emphasized the importance of operationalising the BBIN MVA expeditiously to enable seamless movement between them for facilitating trade and people-to-people contact. 

• Asian Development Bank provided technical and knowledge support to the meeting. 

What is the need for BBIN agreement?

• The South Asian Association for Regional Cooperation (SAARC) has been unable to achieve its potential as key initiatives, including in the important area of connectivity, are held back due to the obstructionist approach of Pakistan.

• The finalisation of the SAARC Regional Railways Agreement and the SAARC Motor Vehicle Agreement, aimed at increasing cross-border and regional connectivity, has been pending due to lack of response from Pakistan.

• Initiatives to enhance connectivity in the region have been pursued at sub-regional level by the Indian government.

• The Indian government expects that regional cooperation would advance under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and BBIN.

• Towards enhancing connectivity, Bangladesh, Bhutan, India and Nepal concluded the sub-regional Motor Vehicle Agreement.

BBIN Motor Vehicles Agreement (MVA)

• The BBIN Motor Vehicles Agreement was signed by representatives of Bangladesh, Bhutan, India and Nepal on June 15, 2015 in Thimphu, Bhutan. 

• Subsequently, it has been ratified by Bangladesh, India and Nepal. The National Assembly (Lower House) of Bhutan had endorsed the BBIN MVA in May 2016, and forwarded it to the National Council (Upper House) of Bhutan for consideration.

• Since the 1980s, tariffs within the region have been gradually reduced. Following the signing of the South Asian Free Trade Area (SAFTA) agreement, intra-regional trade in South Asia doubled from $10 billion in 2006 to $20 billion in 2012. However, non-tariff barriers continue to impede growth of intra-regional trade. The BBIN agreement is envisaged to provide a framework for exchange of commercial traffic rights arrangements.

• Finalisation of the BBIN Motor Vehicle Agreement represents considerable efforts of South Asian countries to facilitate cross-border trade and travel. It will allow passenger, personal, and cargo vehicles to cross international borders and traverse key trade routes in the participating countries. 

• Once implemented, the agreement will reduce costly and time-consuming trans-shipment of people and goods at border crossings.

• Operationalising 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.

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