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.