BIMSTEC Charter Enters into Force

Context

Recently the BIMSTEC acquired ‘legal personality’ after the first charter came into force which allows the organization to add new members and observers.

Background of BIMSTEC Charter

• Adoption of the BIMSTEC Charter: After the pandemic, the leaders of BIMSTEC nations convened virtually on March 30, 2022, chaired by Sri Lanka, and endorsed the charter. 
  • The adoption of the BIMSTEC charter took place during its 5th Summit in March 2022. 
  • Thailand assumed the chairmanship of BIMSTEC following the 5th leaders’ summit.
• BIMSTEC Charter Ratification: Nepal’s parliament addressed the BIMSTEC charter in April 2024, ratifying it and facilitating its entry into force. 
  • Consequently, the BIMSTEC charter is reported to have become effective on May 20, 2024.

Significance of BIMSTEC as legal personality

• BIMSTEC Legal Recognition: With the charter now in effect, BIMSTEC has gained a ‘legal personality’, meaning it possesses rights and responsibilities under the law. 
  • This enables it to engage in structured diplomatic discussions with other groups and nations. 
  • The activation of the charter establishes a legal and institutional framework for fostering substantial cooperation and enhanced integration within the Bay of Bengal region.

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Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation

• About: BIMSTEC, an economic bloc established in June 1997 by the Bangkok Declaration, initially comprised four member states: Bangladesh, India, Sri Lanka, and Thailand. 
  • Nepal joined as an observer state in 1998 and later became a full-time member alongside Bhutan in February 2004.
• Member Countries: Member countries of BIMSTEC include Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan. 
• Secretariat: Dhaka, Bangladesh.
• Goal: To address the impacts of globalization by fostering regional growth through collaborative efforts, leveraging regional resources, and geographical advantages.
• Significance of BIMSTEC: Approximately 22% of the global population resides in the seven countries surrounding the Bay of Bengal, boasting a collective GDP nearing $2.7 trillion. 
  • From 2012 to 2016, all seven nations maintained average annual growth rates ranging between 3.4% and 7.5%. Moreover, a quarter of the world’s traded goods traverse the bay annually.

Areas of Collaboration

• BIMSTEC Priority Areas: BIMSTEC operates as a sector-focused cooperative organization, initially encompassing six sectors: Trade, Technology, Energy, Transport, Tourism, and Fisheries.
  • Presently, BIMSTEC has expanded to 14 priority areas of cooperation, with Climate Change added as the 14th priority area in 2008.
  • Within these priority areas, member countries select which ones they are willing to lead. For instance, India leads in Transport & Communication, Tourism, Environment & Disaster Management, as well as Counter-Terrorism & Transnational Crime.

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