BBIN

The BBIN Initiative, comprising Bangladesh, Bhutan, Republic of India, and Nepal, serves as a collaborative framework within the Indian subcontinent. This initiative brings together official representatives from the member countries to develop, execute, and assess quadrilateral agreements focused on various sectors, including the management of water resources, connectivity in power supply, transportation, and infrastructure development.

Background

Growth Quadrangle in the Indian Subcontinent

Recognising the economic interdependence highlighted by "growth triangles" throughout Asia, and addressing the previously overlooked concerns of nations in the eastern subcontinent, a Council of Ministers meeting in May 1996 established a sub-regional body comprising Nepal, Bhutan, northeast India, and Bangladesh, known as the South Asian Growth Quadrangle (SAGQ). At a summit in Malé the following year, member states agreed to coordinate efforts tailored to the unique needs of three or more countries, formalising processes aimed at fostering intra-regional trade, investment, tourism, communication, and energy resources, particularly focusing on the northeastern part of the subcontinent. Specific areas of collaboration were identified to drive growth and complement each other’s strengths.

The mechanism operated through targeted projects, allowing member states to integrate without necessitating changes to broader policies or governance methods. Its goal was to stimulate the subregion's untapped socio-economic potential by leveraging the varying stages of development among members. Given that the borders of these states lie within 50 kilometers of Siliguri, the shared norms, traditions, and lifestyles of the local populace highlight the significance of creating an integrated market. A strong emphasis was placed on power trading between regions rich in energy resources and those facing shortages, aiming to mitigate the adverse effects of energy deficits on industrial output, reverse stagnant growth rates, minimize transmission and distribution losses via interconnected grids, and generate necessary revenue for upstream nations struggling with balance of payments issues. Nonetheless, the advantages of such trading opportunities remain largely unrealized due to the lack of a unified strategy to eliminate existing barriers.

Over the years, the objectives of the initiative broadened to include land and port connectivity. Discussions regarding funding for this expansion took place at the Asian Development Bank (ADB) headquarters in Manila, culminating in the establishment of the South Asia Subregional Economic Cooperation (SASEC) Program in March 2001. This initiative aimed to foster economic synergy through vital trade routes and cross-border collaborations. For example, it sought to connect West Bengal with the remote northeastern states via Bangladesh through railways, highways, and maritime corridors, as well as developing north-south transport links that traverse Nepal, Bhutan, and the hilly regions of India to ports in the northern Bay of Bengal. These networks were intended to connect remote areas across member states and further eastward. However, following the inclusion of the Maldives and Sri Lanka into SASEC in March 2014, the idea of quadripartite integration seemed to lose momentum or become dormant.

Informal dialogues led to a renewed agreement on enhancing subregional connections beyond bilateral frameworks, largely due to the ongoing inadequacies of existing systems. During a summit in Kathmandu in November 2014, regional states endorsed an accord on land transport, although one country’s reservations prevented its full realisation. The resulting Summit Declaration reaffirmed that subregional initiatives could contribute significantly to broader connectivity. A cooperation framework was subsequently established, and the first Joint Working Group (JWG) meeting involving all four countries took place in January 2015.

Member states

Country	Population (2018)	GDP (PPP) (bn)	GDP per Capita (PPP)	GDP Growth Rate	Foreign Exchange Reserves (bn)	Literacy Rate (Given age & above) (15+)	Primary School Enrollment	Secondary School Enrollment	Life Expectancy (years)
Bangladesh	161,376,708	$1856	$5,453	8.2% (2019)	$37.10	93.3%	92%	73.91%	72.3
Bhutan	754,388	$6.3	$8,158	6.4%	$1.24	87.3%	91%	78%	71.5
India	1,352,642,280	$9,596.6	$7,266	7.6%	$537.55	91.7%	94%	69%	69.4
Nepal	28,095,714	$70.7	$2,488	5.5%	$11.65	84.8%	98%	67%	68

Data sourced from the International Monetary Fund, current as of April 2015, and is given in US dollars.[1]

Meetings of Joint Working Groups

Date	Host	Representation
18–19 April 2013	Dhaka, Bangladesh	Ambassador, Ministry Directors
30–31 January 2015	Delhi, India	Joint Secretaries
19–20 January 2016	Dhaka, Bangladesh	Foreign Affairs Joint Secretaries

Motor vehicle agreement

From left to right: The Minister of Road Transport and Bridges, Bangladesh, Obaidul Quader, with the Minister of Information and Communications, Bhutan, Mr. Lyonpo D.N. Dhungyel, the Minister for Road Transport & Highways and Shipping, India, Nitin Gadkari, and the Minister of Physical Infrastructure and Transport, Nepal, Mr. Bimalendra Nidhi on the occasion of signing of the Motor Vehicles Agreement for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between Bangladesh, Bhutan, India and Nepal, in Thimphu, Bhutan on 15 June 2015.

During the 18th SAARC summit held in Kathmandu in November 2014, India put forth a proposal for a SAARC Motor Vehicle Agreement. However, due to objections from Pakistan, a consensus could not be reached. Consequently, India decided to pursue a similar agreement with the BBIN countries. The BBIN Motor Vehicles Agreement (MVA) was signed on 15 June 2015 (INC: 24 saura jyēṣṭha 1937), at a meeting of transport ministers in Thimphu, Bhutan. This agreement allows member states to operate their vehicles within each other's territories for the transportation of both cargo and passengers, including transit for third-country transport and personal vehicles.

To facilitate this arrangement, each vehicle will need an electronic permit to enter another country. Additionally, border security measures will be maintained between the nations. Cargo vehicles will have the advantage of entering any of the four countries without the requirement of transferring goods from one truck to another at the border. Under this system, cargo vehicles are monitored electronically, permits are issued online, and these are transmitted digitally to all land ports. Each vehicle is equipped with an electronic seal that notifies regulators whenever the container door is opened.

The Indian government appointed DHL Global Forwarding to conduct a pilot run under the BBIN Motor Vehicle Agreement. On 01 November 2015 (INC: 10 saura kārtika), the first cargo truck benefiting from this agreement was flagged off from Kolkata. This truck traveled 640 kilometers to reach Agartala via Dhaka, showcasing a significant reduction in distance; prior to the signing of the BBIN Motor Vehicle Agreement, the same journey would have required the truck to cover 1,550 kilometers through Indian territory. Officials highlighted this as a clear example of the time and cost efficiencies that the BBIN Motor Vehicle Agreement promises to deliver.

In August 2016, Bangladesh further tested the agreement by dispatching a truck carrying garments from Dhaka to New Delhi. This truck was issued an electronic permit to enter Indian territory through an online web-based system, streamlining the process significantly. Unlike previous procedures that necessitated customs clearance and various formalities at the border, the truck was equipped with an electronic seal and a GPS tracking device. This enabled customs clearance to take place upon arrival in New Delhi rather than at the border, thereby expediting the overall transit process.

The BBIN Motor Vehicle Agreement will take effect once it is ratified by all four member nations. As of now, Bangladesh, India, and Nepal have ratified the agreement. In early 2016, the lower house of the Bhutanese parliament approved the agreement; however, it was rejected by the upper house in November 2016. Bhutan's concerns included a request for a cap on the number of vehicles allowed to enter its territory.

In May 2017, reports emerged indicating that the Bhutanese government informed India to move forward with the agreement without Bhutan's participation, as it faced challenges in ratifying the agreement in the upper house due to opposition from certain political parties. Opponents within Bhutan argued that the agreement would lead to an influx of vehicles from other countries, potentially harming local truckers and causing environmental issues. Notably, Bhutan already has a bilateral agreement with India that allows for seamless vehicle movement between the two nations. Thus, Bhutan's decision not to ratify the BBIN MVA primarily impacts its trade relations with Nepal and Bangladesh.

The Bhutanese government expressed its intention to revisit the ratification of the MVA after the general elections in 2018. Additionally, due to strained diplomatic relations between Bhutan and Nepal, the government led by Tshering Tobgay was concerned that allowing Nepalese trucks into Bhutan might negatively affect public sentiment. India characterized Bhutan's stance as a "setback" rather than a "rejection" of the agreement, emphasising that it is natural for member states to progress at different rates and reaffirming its commitment to ongoing dialogue with Bhutan regarding the issue.

In December 2018, Bhutanese Foreign Minister Tandi Dorji announced that the new government would reevaluate the BBIN Motor Vehicle Agreement. He highlighted concerns that Bhutanese trucks were encountering challenges when attempting to enter Bangladesh, while trucks from India and Nepal were granted easier access. During the second Foreign Office Consultations (FOC) held between Bangladesh and Bhutan in Dhaka in March 2019, Bangladeshi Foreign Secretary M. Shahidul Haque emphasided the significance of Bhutan ratifying the agreement, describing it as "crucial" for the future development of the region. This underscores the regional sentiment regarding the potential benefits of the agreement in facilitating trade and enhancing connectivity among the member nations.

Read also

• ASEAN
• BIMSTEC
• India's Look-East connectivity projects
• Foreign relations of Bangladesh
• Foreign relations of Bhutan
• Foreign relations of India
• Foreign relations of Nepal