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Subject: International Relations

  • India condemns atrocities in Bucha, Ukraine

    India condemned the killing of civilians in Bucha, Ukraine, at the United Nations Security Council (UNSC) calling for an independent UN inquiry. (However India abstained from blaming Russia for the civilian deaths.)

    Note: Such events are of least GS importance. However, one must recognize the severity of such massacres and the imprint that it left on entire humanity. Yes, it is not India’s war, but it is no mean activity for a military superpower to march and annexe a small neighbour.  This topic holds much importance for personality test.

    Bucha massacre

    • The grimmest discoveries have been made in a Kyiv suburb called Bucha, a town located about 25 km to the northwest of the capital.
    • More than 300 bodies have been found in the town, some with their hands bound, flesh burned, and shot in the back of the head.
    • Satellite images now available show streets strewn with corpses, and many of the bodies seen by journalists in the past couple of days appear to have lain in the open for weeks.
    • The reports and pictures of corpses wearing civilian clothes, some clutching shopping bags, suggest that ordinary citizens were murdered without provocation, as they went about their daily business.

    A no lesser holocaust event

    • The discoveries have drawn comparisons with the killings of civilians in this area during World War II.
    • It reminds of the First Battle of Kyiv (part of Hitler’s Operation Barbarossa against the Soviet Union that began in June 1941) and the Second Battle of Kyiv (November-December 1943).
    • The Red (Soviet) Army started to push back the Germans from Ukraine, the area around the Ukrainian capital, including Bucha.
    • It saw the “Holocaust by bullets” during which an estimated 1.5 million people, mostly Jews, were shot dead at close range.

    A genocide or war crimes?

    • War crimes are defined as “grave breaches” of the Geneva Conventions, agreements signed after World War II that laid down international humanitarian laws during war time.
    • Deliberately targeting civilians amounts to a war crime.
    • The International Criminal Court (ICC) at The Hague has already opened an investigation into possible war crimes by Russia.
    • The investigation could in theory target even Putin. But it will be difficult to bring Russian defendants to trial or to prove intent.
    • Russia does not recognise the ICC and will likely not cooperate with the investigation.
    • The crimes of genocide are defined by the United Nations Genocide Convention of December 1948.
    • It includes acts “committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group”. Genocide is seen as the gravest and most serious of all crimes against humanity.

     

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  • India-Australia sign Economic Cooperation and Trade Agreement (ECTA)

    India and Australia signed an Economic Cooperation and Trade Agreement (ECTA) in the presence of PM Narendra Modi and his counterpart in Canberra Scott Morrison.

    India-Australia ECTA

    • It is the first trade agreement of India with a developed country after more than a decade.
    • The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries.
    • It covers areas like Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Customs Procedures, Pharmaceutical products, and Cooperation in other Areas.
    • Eight subject specific side letters covering various aspects of bilateral economic cooperation were also concluded as part of the Agreement.

    Background of the ECTA

    • The negotiations for India-Australia ECTA were formally re-launched on 30 September 2021 and concluded on a fast-track basis by the end of March 2022.
    • India and Australia enjoy excellent bilateral relations that have undergone transformative evolution in recent years, developing along a positive track, into a friendly partnership.
    • Growing India-Australia economic and commercial relations contribute to the stability and strength of a
    • Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner.

    Features of the agreement

    • The ECTA between India and Australia covers almost all the tariff lines dealt in by India and Australia respectively.
    • India will benefit from preferential market access provided by Australia on 100% of its tariff lines.
    • This includes all the labour-intensive sectors of export interest to India such as Gems and Jewellery, Textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices, and Automobiles.
    • India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines etc.
    • As regards trade in services, Australia has offered wide ranging commitments in around 135 sub sectors and Most Favoured Nation (MFN) in 120 sub sectors which cover key areas of India’s interest like IT, ITES, Business services, Health, Education, and Audio visual.
    • Both sides have also agreed to a separate Annex on Pharmaceutical products under this agreement, which will enable fast track approval for patented, generic and biosimilar medicines.

    Way ahead

    • The India-Australia ECTA will further cement the already deep, close and strategic relations between the two countries.
    • It will significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the peoples of the two countries.

     

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  • State of Emergency in Sri Lanka

    A day after angry mob converged in front of President Gotabaya Rajapaksa’s Colombo residence, demanding he step down immediately, he declared a state of Emergency in Sri Lanka.

    Sri Lankan Crisis: A backgrounder

    • Sri Lanka’s economic crisis can be traced to two key developments— the Easter Sunday bombings of 2019 that deterred tourists, and the pandemic since early 2020.
    • These events stalled recovery and further drained the economy.
    • As it grappled with an unprecedented challenge, the Rajapaksa regime made policy choices that are now proving to be costly.
    • It cut the government’s tax revenue substantially and rushed into an ‘organic only’ agricultural policy that will likely slash this year’s harvest by half.
    • The weak and debt-ridden economy with the lingering strain of the pandemic, and ill-advised policies accelerated the downward spiral.

    What were the economic indicators?

    • COVID-19 hit Sri Lanka’s key foreign revenue earning sectors hard.
    • Earnings from tourism, exports, and worker remittances fell sharply in the last two years.
    • But the country could not stop importing essentials, and its dollar account began dwindling.
    • Fast draining foreign reserves, a glaring trade deficit, and a related Balance of Payments problem came as crucial signals.
    • Colombo’s huge foreign loan obligations and the drop in domestic production compounded the economic strain.

    When did things begin to worsen?

    • The long-simmering crisis made its first big announcement during last August’s food emergency, when supplies were badly affected.
    • It was soon followed by fears of a sovereign default in late 2021, which Sri Lanka averted.
    • But without enough dollars to pay for the country’s high import bill, the island continued facing severe shortage of essentials — from fuel, cooking gas, and staple foodgrains to medicines.

    How did the crisis manifest itself on the ground?

    • Consumers could not find the most basic things such as petrol, LPG cylinders, kerosene, or milk in the market.
    • They spent hours waiting in long queues outside fuel stations or shops.
    • Supermarket shelves were either empty or had products with high price tags that most could not afford.
    • For instance, the price of one kg of milk powder, a staple item in dairy-deficient Sri Lanka, suddenly shot up to nearly LKR 2000 in March.
    • Be it cooking gas, oils, rice, pulses, vegetables, fish, meat, consumers found themselves paying substantially more, or simply had to forego the item.
    • The fuel shortage has led to long blackouts — up to 13 hours — across the island.

    What is the situation now?

    • The value of the Sri Lankan rupee has dropped to 300 against a U.S. dollar (and even more than 400 in the black market), putting importers in a difficult spot.
    • The government is unable to pay for its import shipments, forcing consignments to leave the Colombo port.
    • For the average citizen contending with COVID-induced salary cuts and job losses, the soaring living costs have brought more agony.

    How did India help mitigate the crisis?

    • India has extended $2.4 billion this year.
    • China, that is considering a fresh request from Colombo for $2.5 billion assistance, in addition to the $2.8 billion it has extended since the pandemic broke out.
    • The government has decided to negotiate an International Monetary Fund programme, while seeking support from other multilateral and bilateral sources.
    • But even with all this help, Sri Lanka can barely manage.

    How has it affected the people?

    • Sri Lankans are seething with anger, going by public demonstrations and protests.
    • They want the President to step down immediately and the ruling clan to leave the country’s helm.
    • They have been agitating in different parts of the country, including near the President’s home.
    • Former military man Gotabaya Rajapaksa, who came to power on a huge mandate in 2019, is Sri Lanka’s most unpopular leader today.
    • Following the protests near his home, Mr. Rajapaksa said “extremists” were plotting an ‘Arab Spring’ and hence he declared a state of Emergency.

    Back2Basics: Financial Emergency in India

    • The President of India can declare the Financial Emergency on the aid and advise of the Council of Ministers.
    • She/ He has to be satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
    • Article 360 gives authority to the President of India to declare a financial emergency.
    • However, the 44th Constitutional Amendment Act of 1978 says that the President’s ‘satisfaction’ is not beyond judicial review.
    • It means the Supreme Court can review the declaration of a Financial Emergency.

    Parliamentary Approval and Duration

    • A proclamation of financial emergency must be approved by both the Houses of Parliament within two months from the date of its issue.
    • A resolution approving the proclamation of financial emergency can be passed by either House of Parliament (Lok Sabha or Rajya Sabha) only by a simple majority.
    • Once approved by both the Houses of Parliament, the Financial Emergency continues indefinitely till it is revoked.
    • It may be revoked by the President anytime without any Parliamentary approval (but with the usual aid and advice).

    Effects of Financial Emergency

    • During the financial emergency, the executive authority of the Center expands and it can give financial orders to any state according to its own.
    • All money bills or other financial bills, that come up for the President’s consideration after being passed by the state legislature, can be reserved.
    • Salaries and allowances of all or any class of persons serving in the state can be reduced.
    • The President may issue directions for the reduction of salaries and allowances of: (i) All or any class of persons serving the Union and the judges of the Supreme Court and the High Court.

    Try this PYQ:

    Q. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following?

     

    (a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.

    (b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.

    (c) In the event of grave financial crisis in the country, the President of India can declare Financial Emergency without the counsel from the Cabinet.

    (d) State Legislatures cannot make laws on certain matters without the concurrence of the Union Legislature.

     

    [wpdiscuz-feedback id=”b9fdxoon9b” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • BIMSTEC

    Context

    The fifth summit of the regional grouping, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), held virtually in Colombo on March 30, has advanced the cause of regional cooperation and integration.

    Colombo package

    • Economic challenges: Representing a fifth of the world’s population that contributes only 4% of the global GDP, can this multilateral grouping trigger accelerated economic development?
    • It was clear that BIMSTEC first needed to strengthen itself — by re-defining its purpose and rejuvenating its organs and institutions.
    • The eventual result is now seen in the package of decisions and agreements announced at the latest summit.

    Achievement of Colombo Summit

    • 1] Adoption of Charter: Adopted formally, it presents BIMSTEC as “an inter-governmental organization” with “legal personality.”
    • BIMSTEC’s purposes: Defining BIMSTEC’s purposes, it lists 11 items in the first article.
    • Among them is acceleration of “the economic growth and social progress in the Bay of Bengal region”, and promotion of “multidimensional connectivity”.
    • The grouping now views itself not as a sub-regional organisation but as a regional organisation whose destiny is linked with the area around the Bay of Bengal.
    • 2] Reduction in the sectors of cooperation: The second element is the decision to re-constitute and reduce the number of sectors of cooperation from the unwieldy 14 to a more manageable seven.
    • Each member-state will serve as a lead for a sector: trade, investment and development (Bangladesh); environment and climate change (Bhutan); security, including energy (India); agriculture and food security (Myanmar); people-to-people contacts (Nepal); science, technology and innovation (Sri Lanka), and connectivity (Thailand).
    • 3] Adoption of the Master Plan for Transport Connectivity:  the summit participants adopted the Master Plan for Transport Connectivity applicable for 2018-2028.
    •  It was devised and backed by the Asian Development Bank (ADB).
    • It lists 264 projects entailing a total investment of $126 billion.
    • Projects worth $55 billion are under implementation. BIMSTEC needs to generate additional funding and push for timely implementation of the projects.
    • 4] Signing of three new agreements: Finally, the package also includes three new agreements signed by member states, relating to mutual legal assistance in criminal matters, cooperation between diplomatic academies, and the establishment of a technology transfer facility in Colombo.

    Challenges

    • The pillar of trade, economic and investment cooperation needs greater strengthening and at a faster pace.
    • Absence of FTA: Despite signing a framework agreement for a comprehensive Free Trade Agreement (FTA) in 2004, BIMSTEC stands far away from this goal.
    • Lack of legal instruments: The need for expansion of connectivity was stressed by one and all, but when it comes to finalising legal instruments for coastal shipping, road transport and intra-regional energy grid connection, much work remains unfinished.
    • There needs to be mention of the speedy success achieved in deepening cooperation in security matters and management of Humanitarian Assistance and Disaster Relief (HADR).
    • Focus more on new areas: BIMSTEC should focus more in the future on new areas such as the blue economy, the digital economy, and promotion of exchanges and links among start-ups and Micro, Small and Medium Enterprises (MSMEs).
    •  Step up the personal engagement of political leadership: The personal engagement of the political leadership should be stepped up.
    • The decision taken in Colombo to host a summit every two years is welcome if implemented.
    • Greater visibility:  BIMSTEC needs greater visibility.
    • India’s turn to host the G20 leaders’ summit in 2023 presents a golden opportunity, which can be leveraged optimally. Perhaps all its members should be invited to the G20 summit as the chair’s special guests.
    • Simplify the groupings name: The suggestion to simplify the grouping’s name needs urgent attention.
    • The present name running into 12 words should be changed to four words only — the Bay of Bengal Community (BOBC).
    • It will help the institution immensely. Brevity reflects gravitas.

    Conclusion

    BIMSTEC is no longer a mere initiative or programme. The question to address is whether it is now capable of tackling the challenges facing the region.

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  • India to set up Maritime Rescue Co-ordination Centre (MRCC) in Colombo

    India and Sri Lanka have signed an MoU for the Indian public sector Bharat Electronics Ltd (BEL) to set up a state of the art Maritime Rescue Co-ordination Centre (MRCC) in Colombo.

    What is MRCC?

    • MRCCs are part of an international network under the UN’s International Maritime Organisation.
    • They aim to monitor the sea lanes with the objective of swift response to emergencies, such as vessels in distress, rescue and evacuation of people, and prevention of and containing environmental disasters such as oil spills.
    • Each country is responsible for its own Search and Rescue Region (SRR).
    • The work of MRCCs is co-ordinated by the Navy or Coast Guard in each country.
    • In India, the Coast Guard is the co-ordinating agency. In Sri Lanka, it is the Navy.
    • The MRCC will be established with a grant of $6 million from India.

    Benefits offered

    • MRCC enhances co-operation on maritime security between the two countries in a part of the Indian Ocean region where the India-China rivalry has taken centre stage over the last decade.
    • This engagement will augment interoperability and seamless maritime actions like carrying out anti-smuggling operations in the Indian Ocean Region.

    Why such a move by India?

    • Sri Lanka’s SRR is a wide swathe of 1,778,062. 24 sq kms of the Indian Ocean, and nearly 200 ships pass through these waters every day.
    • The MRCC agreement appears to be part of India’s SAGAR (Security and Growth for all in the Region) initiative in the Indian Ocean.

    Issues with MRCC

    • The MRCC has been controversial in Sri Lanka who see every development by India suspicious.
    • Sri Lanka’s Defence Ministry issued a clarification on the MRCC, as well as on recent agreements with India for a naval floating dock and Dornier aircraft.
    • The clarification has provided more details about the agreements than have been in the public domain so far.

     

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  • Significance of India-Australia Economic Cooperation and Trade Agreement

    Context

    Prime Ministers of India and Australis will preside virtually over the signing of a bilateral Free Trade Agreement(ECTA) negotiated in torturous detail over the last decade.

    Background

    • Negotiations for a bilateral Comprehensive Economic Cooperation Agreement began in May 2011.
    • But the negotiations continued in fits and starts, without significant progress or indeed real political direction.
    • In June 2020, as part of the Joint Statement after establishing a Comprehensive Strategic Partnership, it was decided to re-engage on a CECA.
    • Consequently, at the 17th India-Australia Joint Ministerial Commission meeting in September 2021, CECA negotiations were re-launched.
    • During virtual summit in 2022, India-Australia fleshed out areas of cooperation ranging from science and technology to climate change and defence to people-to-people ties, and included possibilities of joint surveillance and real-time intelligence sharing.
    • On the eve of the summit, the Morrison government invested over USD 280 million to give a fillip to cooperation with India; to further grow its economic relationship and support jobs and businesses in both countries; as well as to empower the Indian diaspora.

    About INDAUS-ECTA

    • The INDAUS ECTA (India-Australia Economic Cooperation and Trade Agreement), reflects vision of the essential unity of the two countries.
    • The ECTA deal is apparently fully in compliance with WTO rules and Article 24 of GATT.
    • Article 24 of GATT allows countries to grant special treatment to one another by establishing a free-trade association, provided that “(1) duties and other trade restrictions would be eliminated on substantially all the trade among the participants, (2) the elimination of internal barriers occurred within a reasonable length of time….”
    • The ECTA should give a boost to India’s labour-intensive manufacturing sector, with a considerable leg-up to the pharma, textile, gemstone and jewellery sectors.
    •  Indian students in Australia will find an easier pathway to employment, and there will be greater ease of visa for a range of skilled human capital from India in demand in Australia, including chefs and yoga instructors.
    • Most of the farming and dairy sector seems to have been kept away from the present agreement.
    • Australian coal will probably get relatively unfettered access to India.

    Significance of the ECTA for India-Australia relations

    • The ECTA represents a watershed moment in bilateral relations.
    • ECTA is also a significant turning point for India’s foreign policy — both in terms of geo-strategy as well as geo-economics.
    • Partnership with the convergence of interests: India and Australia today represent a partnership with a near complete convergence of interests and values.
    • Shared concerns over China: Two multicultural, federal democracies that share concerns about stability in the Indo Pacific, are apprehensive about Chinese hegemonic designs, and are increasingly coordinating their policies, are natural partners of the future.

    Conclusion

    The ECTA signals that India’s relations with Australia — two central pivots of the Quad — are as strong and resilient as ever.

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  • For deeper, richer India-Mexico ties

    Context

    In 2021, Mexico and India commemorated 71 years of the establishment of diplomatic relations. This article is written by the Foreign Minister of Mexico, who has been on his official visit to India.

    Areas of cooperation between two countries

    • Mexico and India are members of the G-20, which brings together 20 of the largest economies in the world and whose presidency in 2023 will be assumed by India.
    • Non-permanent members of the security council: Both countries are non-permanent members of the United Nations Security Council this year.
    • At both forums, India and Mexico will contribute decisively to world peace and security, and will put poverty reduction at the centre of the multilateral debate.
    • The health sector is another cornerstone of our exchanges.
    • Mexico will strengthen its cooperation with India as one of the leading global producers of medicines and will also seek joint pharmaceutical manufacturing.
    • Another key focus area of cooperation will be aerospace.
    • Although it was started less than a decade ago, this has enormous potential for the Mexican Space Agency and for regional initiatives such as the recently established Latin American and Caribbean Space Agency (ALCE) of which Mexico is the founder.
    • In the economic sphere, Mexico’s links with India, the sixth-largest economy in the world and our tenth-largest trading partner, undoubtedly offers a wide range of prospects for Mexico’s productive sectors.

    Conclusion

    Links between India and Mexico have evolved positively in recent years, demonstrating the complementarities between two ancient countries, rich in history and diversity. In this spirit, we will take a firm step towards a tangible alliance to showcase this evolution, which could result in mutual benefits.

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  • Bridging the bay in quest of a stronger BIMSTEC

    Context

    Sri Lanka is gearing up to host the Fifth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit, now in its silver jubilee year. The summit is being held in virtual/hybrid mode and Sri Lanka is the current BIMSTEC chair.

    Why BIMSTEC matters for India and the region

    • The unique ecology of BIMSTEC is witnessing enriched political support and commitment from India.
    • India has made the Bay of Bengal integral to India’s ‘Neighbourhood First’ and ‘Act East’ policies which can accelerate the process of regional integration.
    • Significance in economic and strategic space: Finalising the BIMSTEC Charter; BIMSTEC Master Plan for Transport Connectivity; BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters; BIMSTEC Technology Transfer Facility (TTF); cooperation between diplomatic academies/training institutions; and a template of Memorandum of Association for the future establishment of BIMSTEC centres/entities present signs of optimism.
    • BIMSTEC as a centre of Indo-Pacific: With a re-emergence of the idea of the ‘Indo-Pacific’ region, the growing economic, geopolitical and security connections between the Western Pacific and the Indian Ocean regions are creating a shared strategic space.
    • The Bay of Bengal is evolving as the centre of the Indo-Pacific region again.
    • The renewed focus has given a new lease of life to the developmental efforts in the region, in particular BIMSTEC.

    Way forward for BIMSTEC

    1] Political support and strong commitment from all member countries

    • With a changed narrative and approach, the Bay of Bengal has the potential to become the epicentre of the Indo-Pacific idea — a place where the strategic interests of the major powers of East and South Asia intersect.
    • Potential of BIMSTEC: There is a greater appreciation of BIMSTEC’s potential due to geographical contiguity, abundant natural and human resources, and rich historical linkages and a cultural heritage for promoting deeper cooperation in the region.
    • Political support and strong commitment from all member countries are crucial in making BIMSTEC a dynamic and effective regional organisation.

    2] Boost connectivity

    • Connectivity is essential to develop a peaceful, prosperous and sustainable Bay of Bengal region.
    • The BIMSTEC Master Plan for Transport Connectivity will provide the necessary boost to connectivity.
    •  Therefore, BIMSTEC needs to address two dimensions of connectivity – one, upgrading and dovetailing national connectivity into a regional road map; and two, development of both hard and soft infrastructures.

    3] Enhance cooperation in different areas

    • There is growing involvement of educational institutions, industries and business chambers through various forums and conclaves which are helping to enhance cooperation in the areas of education, trade and investments, information technology and communication among others.
    • India has implemented its promise to set up a Centre for Bay of Bengal Studies (CBS) at Nalanda University, Bihar for research on art, culture and other subjects related to the Bay of Bengal.

    4] Strengthen the institutional capacity of the BIMSTEC Secretariat

    • The BIMSTEC Secretariat coordinates, monitors and facilitates the implementation of BIMSTEC activities and programmes. The leaders must agree to strengthen the institutional capacity of the BIMSTEC Secretariat.
    • Charter for BIMSTEC: Approval of a charter for BIMSTEC during the summit will further augment its visibility and stature in international fora.

    Conclusion

    The quest for economic growth and the development of the BIMSTEC region can be achieved with single-minded focus and cooperation among the member counties. In this endeavour, India has a key role in accelerating regional cooperation under the BIMSTEC framework and in making it vibrant, stronger and result-oriented.

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  • India seeks closer BIMSTEC partnership

    Addressing the ministerial of the BIMSTEC (Bay of Bengal Initiative for Multi–Sectoral Technical and Economic Cooperation), EAM S. Jaishankar urged closer cooperation and connectivity among the members.

    What is BIMSTEC?

    • The BIMSTEC formed in 1997 is an international organisation of seven South Asian and Southeast Asian nations, housing 1.73 billion people and having a combined gross domestic product of $3.8 trillion (2021).
    • The BIMSTEC member states – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand – are among the countries dependent on the Bay of Bengal.
    • Leadership is rotated in alphabetical order of country names. The permanent secretariat is in Dhaka, Bangladesh.
    • A BIMSTEC free trade agreement is under negotiation (c. 2018), also referred to as the mini SAARC.

    Objectives of BIMSTEC

    There are 14 main sectors of BIMSTEC along technological and economic cooperation among South Asian and Southeast Asian countries along the coast of the Bay of Bengal.

    1. Trade & Investment
    2. Transport & Communication
    3. Energy
    4. Tourism
    5. Technology
    6. Fisheries
    7. Agriculture
    8. Public Health
    9. Poverty Alleviation
    10. Counter-Terrorism & Transnational Crime
    11. Environment & Disaster Management
    12. People-to-People Contact
    13. Cultural Cooperation
    14. Climate Change

    About the proposed BIMSTEC FTA Framework

    • The BIMSTEC FTA has been signed by all member nations to stimulate trade and investment in the parties, and attract outsiders to trade with and invest in the BIMSTEC countries at a higher level.
    • Subsequently, the “Trade Negotiating Committee” (TNC) was set up, with Thailand as the permanent chair, to negotiate in areas of trade in goods and services, investment, economic co-operation, trade facilitations and technical assistance for LDCs.
    • Once negotiation on trade in goods is completed, the TNC would then proceed with negotiation on trade in services and investment.

    Others

    (1) BIMSTEC Coastal Shipping Agreement draft

    • It was discussed on 1 December 2017 in New Delhi, to facilitate coastal shipping within 20 nautical miles of the coastline in the region to boost trade between the member countries.
    • Compared to the deep sea shipping, coastal ship require smaller vessels with lesser draft and involve lower costs.
    • Once the agreement becomes operational after it is ratified, a lot of cargo movement between the member countries can be done through the cost effective, environment friendly and faster coastal shipping routes.

    (2) BIMSTEC Master Plan for Transport Connectivity

    • The BIMSTEC Master Plan for Transport Connectivity, finalized under India’s chairmanship of the expert group last year, envisages a seamless multimodal transport system across the region.
    • This will stimulate intra-regional trade and investment in the region.
    • It identifies 264 projects requiring an investment of $ 126 billion over a ten year horizon from 2018–2028.

     

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  • BIMSTEC must get back on course

    Context

    As world attention remains focused on the war in Ukraine, leaders of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) will attend a summit meeting of the regional organisation.

    Fourteen pillars for special focus

    • Founded in 1997, the seven-member BIMSTEC includes the littoral states of India, Bangladesh, Sri Lanka, Myanmar (Thailand is a member too) and the land-locked states of Nepal and Bhutan.
    • BIMSTEC has identified 14 pillars for special focus.
    • These are trade and investment, transport and communication, energy, tourism, technology, fisheries, agriculture, public health, poverty alleviation, counter terrorism and transnational crime, environment and disaster management, people-to-people contact, cultural cooperation and climate change.
    • While each sector is important, the segmented approach has resulted in aspirations rather than action.
    • The upcoming summit is an opportunity to take concrete steps to address critical challenges confronting the region.

    Challenges facing Bay of Benga

    1] Threat facing marine ecosystem

    • The Bay is an important source of natural resources for a coastal population of approximately 185 million people.
    • The Bay of Bengal is home to a large network of beautiful yet fragile estuaries, mangrove forests of around 15,792 square kilometres, coral reefs of around 8,471 sq.km, sea grass meadows and mass nesting sites of sea turtles.
    • Loss of mangrove and coral reefs: The annual loss of mangrove areas is estimated at 0.4% to 1.7% and coral reefs at 0.7%. I
    • Increasing sea levels: It is predicted that the sea level will increase 0.5 metres in the next 50 years.
    • Cyclonic storms: Moreover, there have been 13 cyclonic storms in the last five years.
    • According to the Food and Agriculture Organization of the United Nations (FAO), the Bay of Bengal is one of IUU fishing hotspots in the Asia-Pacific.
    • The pressing challenges that confront the Bay of Bengal include the emergence of a dead zone with zero oxygen where no fish survive;
    • Leaching of plastic from rivers as well as the Indian Ocean;
    • Destruction of natural protection against floods such as mangroves; sea erosion;
    • Growing population pressure and industrial growth in the coastal areas and consequently, huge quantities of untreated waste flow.

    2] Security threats

    • Security threats such as terrorism, piracy and tensions between countries caused by the arrests of fishermen who cross maritime boundaries are additional problems.
    • The problem of fishermen crossing into the territorial waters of neighbouring countries affect India and Sri Lanka and Bangladesh and Myanmar (also Pakistan on the west coast).

    Way forward

    1] Tap the blue economy potential of Bay of Bengal by creating a regional mechanism

    • There are many opportunities to develop maritime trade, shipping, aquaculture and tourism.
    • The BIMSTEC Summit must create a new regional mechanism for coordinated activities on maritime issues of a transboundary nature.
    • There is also a need for greater scientific research on the impact of climate change in general and on fisheries in particular.
    • Cooperation on marine research: At present, there is limited cooperation between countries of the region in marine research.
    • The use of modern technology and improved fishing practices can go a long way in restoring the health of the Bay.

    2] Focus on the marine environmental protection

    • Marine environmental protection must become a priority area for cooperation in the Bay of Bengal.
    • Develop regional protocols: Regional protocols need to be developed and guidelines and standards on pollution control established.
    • Need for home-grown solutions: There is a need for home-grown solutions based on the capabilities of local institutions and for mutual learning through regional success stories.
    • Regional framework for data collection: There is a need to create regional frameworks for data collection.
    • Participatory approaches must be evolved for near-real-time stock assessment and the creation of a regional open fisheries data alliance.
    • The Bay of Bengal Programme (BOBP), an inter-governmental organisation based in Chennai, is doing good work to promote sustainable fishing.
    • A Bay Of Bengal Large Marine Ecosystem (BOBLME) project is also being launched by the FAO with funding from the Global Environmental Facility (GEF) and others.
    • The BIMSTEC summit must express full support for both BOBP and BOBLME.
    • The summit must mandate officials to come up with measures to curtail unsustainable as well as IUU fishing.
    • Harmonisation of laws in littoral states: Laws and policies in littoral states must be harmonised and the humanitarian treatment of fishermen ensured during any encounter with maritime law enforcement agencies.

    Conclusion

    The challenges that confront the Bay of Bengal region brook no more delay. BIMSTEC must arise, awake and act before it is too late.

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