DHAKA MINISTERIAL TAKES MODEST STEPS TOWARDS MORE

UNCLAS SECTION 01 OF 02 DHAKA 006330

SIPDIS

E.O. 12958: N/A
TAGS: ETRD ECON PREL BG BIMSTEC
SUBJECT: DHAKA MINISTERIAL TAKES MODEST STEPS TOWARDS MORE
ROBUST BIMSTEC



1. Summary: The Eighth BIMSTEC Ministerial Meeting agreed
to modest steps to enhance cooperation among its seven South
Asian and Asian members during its December 18-19 meeting in
Dhaka. The key agreement was on implementation of the
BIMSTEC FTA in goods on July 1, 2006 and a commitment to
address issues that must be resolved before a full FTA
including services and investment can be concluded.
Ministers noted progress in the largely economic focused
existing areas of cooperation, added new areas of cooperation
and formed an experts group to prepare a proposal on a formal
secretariat for BIMSTEC. India agreed to host key senior

SIPDIS
level meetings in 2006 and the Second BIMSTEC Summit in early

2007. End summary.


2. Foreign ministers representing the seven South Asian
and Asian members of the Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
met December 18-19 in Dhaka. The ministerial was preceded on
December 18 by the Tenth Senior Officials Meeting. The
foreign ministers issued a joint statement following the
conclusion of the meeting. A copy of the statement is
available at:
http://www.mofa.gov.bd./bimstec/joint minis decl.html

Trade Liberalization Key Result
--------------


3. Economic cooperation remains at the core of BIMSTEC's
agenda. Ministers reaffirmed their commitment to implement
an FTA in goods by July 1, 2006, directing experts to meet in
Kathmandu December 21-27 to hammer out final details. An
additional experts meeting will be held in January if
necessary so that the "Agreement on Trade in Goods" could be
signed at a Spring Trade/Economic Ministers Meeting in Dhaka.
Ministers also agreed to fast track discussions on trade
facilitation measures, including removal of non-tariff
barriers, negotiation of mutual recognition agreements, and
provisions on avoidance of double taxation.


4. On other economic issues, the ministers principally
expressed satisfaction with progress at the working level on
technology, energy cooperation, and tourism and noted the
importance of regional cooperation in transport and
communication, fisheries and agriculture. The ministers
stressed the importance of IPR protection for biotechnology,
traditional medicine and plant and genetic resources. In a
nod to the host country, Bangladeshi agricultural proposals
for greater technical cooperation were endorsed.

Expanding BIMSTEC's Remit
--------------


5. The ministers discussed several issues first raised at
the First BIMSTEC Summit, including poverty alleviation,
cultural cooperation, terrorism and transnational crimes,
environment and disaster management, public health and
people-to-people contacts. Together with agriculture, these
sectors were added to the list of priority sectors on which
BIMSTEC would focus its work program. Specifically, the
ministers:

-- Urged ministers at an upcoming ministerial meeting on
poverty alleviation to adopt a comprehensive plan of action
consistent with the Millennium Development Goals

-- Praised working group progress on advancing member state
cooperation in combating terrorism and transnational crime

-- Acknowledged the need for greater coordination and
information sharing in response to emerging and regional
infectious diseases, including avian influenza, HIV/AIDS,
SARS, malaria, dengue and tuberculosis

-- Welcomed establishment in India of a Weather and Climate
Center, noting its importance for disaster management and
supporting cooperation with similar regional units under
SAARC and the Asian Disaster Preparedness Center

-- Supported Bhutan's preparations for the first ministerial
meeting on culture, designated June 6 as "BIMSTEC Day" to
promote awareness of BIMSTEC, and endorsed proposals to
facilitate movement of people, starting with business travel
and then liberalizing, and eventually eliminating, visa
requirements.

Building for the Future
--------------


6. Originally conceived as a forum for discussion of
regional issues, BIMSTEC lacks a permanent secretariat. The
BIMSTEC Center, based in Thailand, has handled limited
administrative functions up to now. Given BIMSTEC's growing
ambitions and work program, the ministers agreed the time has
come for a small secretariat, and authorized an experts group
to consider modalities and other details. In the meantime,
ministers formally authorized the BIMSTEC Center to act as a
"mini-secretariat" until a formal secretariat is established.
Next Steps
--------------


7. Several key meetings were agreed to over the next 15
months. The Trade/Economics Ministers Meeting will be held
in Dhaka in spring 2006 to finalize the FTA in goods. India
will host the next Senior Officials Meeting in July/August
2006 and the Ninth BIMSTEC Ministerial Meeting, presumably at
the same time. India will also host the Second BIMSTEC
Summit in early 2007.
CHAMMAS