Friday, October 27, 2006

India-Bimstec FTA talks

Bimstec countries include – India, Bangladesh, Bhutan, Myanmar, Nepal, Sri Lanka and Thailand.

The talks are progressing slowly on account of the differences over the number of products to be subject to liberal rules of origin.

New Delhi will be playing host to the summit of these countries in February 2007.

India’s intra-regional trade with Bimstec countries has increased from 4.12% in 2001 to 6.61% in 2003.

Rules of origin determine which products should qualify as originating from member countries and hence get preferential access. Relaxed rules could result in third country’s goods flowing in on favourable terms.