Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation

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Mr. Alongkorn said that BIMSTEC consisted of Thailand, Mynmar, Bangladesh, India and Sri lanka. In the present, the economy was getting prosperous and affluent, thus, BIMSTEC FTA was signed for over 5,000 products within July 2010, zero tariff and other kinds of tariff are included in the contract. A great opportunity for Thailand to cooperate in both contracts which are BIMSTEC and GMS or ASEAN. Therefore, when these 2 groups are gathered, it became a gigantic economy. Moreover, BIMSTEC and Thailand had trade value over 11,752.02 million USD or 3.31% of total trade value. After FTA, this group was expected to expand the trade value to be over 30% which the main exported product were rubber, sugar, and fruit and imported products were intermediary goods such as tuna fish, and fabic. However, trading with BIMSTEC still encountered some problems such as transportation route in Mynmar.

On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BIST-EC (Bangladesh, India, Sri Lanka, Thailand Economic Cooperation) The First Summit in Bangkok on 31 July 2004, the groupingsnamewaseventuallychangedtotheBayof Bengal Initiative for Multi-Sectoral Technical and EconomicCooperation,orBIMSTEC. The forum is unique as the only link between South Asia andSoutheastAsia,bridgingSouthAsiasLookEast policywithThailandsLookWestpolicy. BIMSTEC can also be considered as a mechanism to promote opportunities for trade, investment and tourism between Thailand and South Asia.

 BIMSTECsobjectivesstretchfromcreationof

economic and social prosperity based on equality, to enhancement of mutual benefits in economic, social and technological aspects. Promote assistance in the form of training, research and development in the areas of agriculture, industry, expansion of trade and investment, improvement in communication and transport, for the purpose of improving living standards and cooperation with other international organizations.

The Trade Negotiating Committee (TNC) was setup and had its 1st Meeting in Bangkok on 7-8 September 2004 As stated in the adopted Terms of Reference, Thailand would be the permanent chair of TNC although the host country shall be rotated. TNCs negotiation area covers trade in goods and services, investment, economic cooperation, as well as trade facilitations and also technical assistance .

 Objective

Strengthen and enhance economic , trade and investment cooperation among the parties Promote trade in good and services Explore new areas and develop appropriate measures for closer cooperation among parties Facilitate a more effective economic integration of the least developed countries in the region and bridge the development gap among the parties.

Sector of Cooperation

Trade and Investment (led by Bangladesh) divided into 2 categories as follows: 1. Goods and services with 8 sub-sectors: * Gems and jewellery (Sri Lanka) * Automotive industry and parts (Thailand) * Processed food (Sri Lanka) * Horticultural / floricultural products (Thailand) * Drugs / pharmaceuticals (India) * Rubber, tea, coffee (Thailand) * Textile and clothing (Bangladesh) * Coconut and spices (India)

Sector of Cooperation
2. Trade and Investment Facilitation with 7 sub-sectors: * Customs Procedures (Bangladesh) * Standards and Conformity (Thailand) * Banking arrangement (Sri Lanka) * e-BIMSTEC (India) * Intellectual property rights (India) * Mobility of business people (Sri Lanka) * Promotion of intra-BIMSTEC Investment (India)

Thailand BIMSTEC Trade

Export Import Trade Balance Total Trade value (Million Baht) % change 2008(Jan-Jul) 2009(Jan-Jul) 2009(Jan-Jul) 104730.41 108876.5 3.96 114915.48 87319.34 -24.01 -10185.07 21557.16 219645.89 196195.84 -10.68

Top 10 imported and exported products

Top 10 Exported Product Value % change Oil 9260.2 117.66 Plastics 9092.7 -14.29 Chemical products 8102.5 78.49 Cemens 4389.4 36.86 Steel 4226.9 -42.13 Machine and parts 3912.9 11.86 Computer and parts 3754.4 5.59 Automobile and parts 3650.2 -13.55 Cloths 3268.2 14.21 Gems and Jewelry 2518.5 -13.08 Total Top 10 52175.9 11.13 Others 56700.6 -1.87 Total 161052.4 3.96 Top 10 imported product Natural gas Jewelry and Gold Chemical products Agricultural products Electronics Machine and parts Metals Medicine Thread and fibre Meat Total Top 10 Others Total Value: Million Baht
Source: Information techonology and communication centre, Ministry of Commerce Source: BIMSTEC

Value % change 50613.4 -5.71 6124.5 -31.8 3579.8 -29.99 3398.4 -57.66 2656.2 -33.63 2211.9 -2.71 2031.5 -76.96 1914 19.98 1600.9 -32.98 1567.3 17.54 75697.9 -21.3 11621.8 -37.83 87319.7 -24.01

Thank you for your attention

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