Bangladesh-Bhutan-India-Nepal (BBIN) – Motor Vehicle Agreement
India, Bangladesh and Nepal have finalized the “Bangladesh-Bhutan-India-Nepal” (BBIN) – Motor Vehicle Agreement (MVA) i.e. BBIN-MVA.
- India, Bangladesh and Nepal have finalized a Memorandum of Understanding (MoU) to implement the BBIN-MVA. It may be noted that the objective of BBIN-MVA is to promote regional trade and connectivity.
- Currently, Bhutan has distanced itself from this agreement.
- In 2014, a regional motor vehicle agreement could not be agreed due to Pakistan’s opposition at the Kathmandu summit of SAARC (i.e., South Asian Association for Regional Cooperation). Subsequently a connectivity project named BBIN-MVA was envisaged.
- It is a sub-regional motor vehicle agreement for the regulation of passenger, personnel and cargo-vehicle traffic.
- This will further strengthen the facility of land based inland road transport.
- In 2017, Bhutan failed to get approval from its parliament due to environmental concerns. After that he got out of the project temporarily.
Significance of BBIN-MVA
- This project will help in accelerating the development of North East region of India.
- Due to this, bilateral and regional value chains can be leveraged. As a result, investment relations will also get a boost.
- This is expected to increase intra-regional trade within South Asia by about 60% and trade with the rest of the world by over 30%.
- Bhutan is unable to attend due to traffic and pollution concerns.
- There is a lack of infrastructure especially at designated border posts.
- Harmony between regulations and customs procedures is a major challenge.
- A comprehensive auto insurance policy would be required for all countries involved in the agreement.
Source – The Hindu