BIMSTEC members discuss draft text of Coastal Shipping Agreement

TOPIC: GS PAPER II INTERNATIONAL RELATION

Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Modalities for promoting coastal shipping in the region were among other issues discussed by the member States of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

According to a Ministry of Shipping release, in this first meeting of the Working Group which happened on November 27 and 28, the member countries discussed the draft text of BIMSTEC Coastal Shipping Agreement drafted by the Ministry of Shipping, Government of India.

Objectives:

• The objective of the agreement is to facilitate coastal shipping in the region, thereby giving a boost to trade between the member countries.
• The agreement would apply to coastal shipping that is shipping within 20 nautical miles of the coastline. 
• The requirements for movement of vessels in this part of the sea are different from standard requirements of deep sea shipping.
• Once the agreement is ratified by the member countries and becomes operational, a lot of cargo movement between the countries can be done through the cost effective, environment-friendly and faster coastal shipping route.
• The meeting of the Working Group is a follow up of the BIMSTEC leaders’ call at the Retreat hosted by Prime Minister Narendra Modi in Goa in October 2016, to enhance connectivity in the region.
• India is the lead country in BIMSTEC for cooperation in transport and communication. Other BIMSTEC countries include Bangladesh, Bhutan, Myanmar, Sri Lanka, Thailand and Nepal.

About the Coastal Shipping Agreement:

• The objective of the above agreementis to facilitate coastal shipping in the region, thereby giving a boost to trade between the member countries.
• The agreement would apply to coastal shipping, that is shipping within 20 nautical miles of the coastline. The requirements for movement of vessels in this part of the sea are different from standard requirements of deep sea shipping.
• Coastal ship movements require smaller vessels and lesser draft, and therefore, involve lower costs.
• Once the agreement is ratified by the member countries and becomes operational, a lot of cargo movement between the member countries can be done through the cost effective, environment friendly and faster coastal shipping route.

 What you need to know about BIMSTEC?

• BIMSTEC or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation is a regional organisation which comprises of seven member states which lie near the Bay of Bengal.
• This sub-regional organisation was started on June 6, in the year 1997 through a Bangkok Declaration.
• BIMSTEC consists of seven countries: 5 come from South Asia, including India, Nepal, Bangladesh, Bhutan, and Sri Lanka; and 2 come from Southeast Asia, which includes Myanmar and Thailand.
• BIMSTEC headquarters are situated in Dhaka, Bangladesh.
• The whole region which constitutes the BIMSTEC is home to over 1.5 billion people. The population counts for around 22 percent of the total world population. These countries have a combined GDP of $2.7 trillion.

QUESTION ARISING FROM THIS NEWS:

Q1) The objective of the above agreement is to facilitate coastal shipping in the region, thereby giving a boost to trade between the member countries. Discuss.

Sources: BUSINESS STANDARD, 26 Nov