Why is it in the News?

Recently, a significant majority in Nepal's Lower House backed the proposal to endorse the BIMSTEC Charter.

About the BIMSTEC Charter:

• The BIMSTEC Charter, officially signed and adopted during the Fifth BIMSTEC Summit in Colombo, Sri Lanka in 2022, serves as a cornerstone legal and institutional framework for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
• This charter aims to establish a structured environment conducive to rapid economic development by delineating specific cooperation projects within the agreed areas of collaboration, along with potential expansions into additional areas as mutually agreed upon by Member States.
• Furthermore, the charter reaffirms the enduring commitment to the foundational principles and objectives of BIMSTEC, as articulated in the Bangkok Declaration of 1997.

The Importance of the BIMSTEC Charter:

• By officially adopting the BIMSTEC Charter, the organization transforms into a structured institution comprising member states situated along the Bay of Bengal, thereby formalizing their cooperation and dependence on this vital maritime region.
• The Charter grants BIMSTEC the authority to establish external relations with non-member states, developmental partners, as well as regional, UN, and international organizations, facilitating broader collaboration and engagement.
• Moreover, it underscores the imperative for a fair, just, equitable, and transparent global order while reiterating the commitment to multilateralism, with the United Nations at its core, and advocating for a rule-based international trading system.

About the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC):

• The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
• This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration.
• It constitutes seven Member States:
  • Five derive from South Asia, including Bangladesh, Bhutan, India, Nepal, and Sri Lanka, and
  • Two from Southeast Asia, including Myanmar and Thailand.
• Initially, the economic bloc was formed with four Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation).
• Following the inclusion of Myanmar on 22 December 1997 during a special Ministerial Meeting in Bangkok, the Group was renamed ‘BIMST-EC’ (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation).
• With the admission of Nepal and Bhutan at the 6th Ministerial Meeting (February 2004, Thailand), the name of the grouping was changed to ‘Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation’ (BIMSTEC).