I am pleased to address the inaugural session of this Dialogue on BIMSTEC-Japan Cooperation. It is a matter of added gratification that this Dialogue is taking place in Dhaka as Bangladesh holds the Chair of the BIMSTEC process. In that capacity, I would like to extend a cordial welcome to the participants from home and abroad, who would speak at the subsequent working sessions.

Dear Participants,

BIMSTEC provides a unique link between South Asia and Southeast Asia. Member countries have the advantage of complementarities given geographical contiguity, differing levels of development and resource endowments.

Our grouping brings together over 1.3 billion people - one fifth of the world population. With a combined GDP of approximately US$ 750 billion, BIMSTEC surely has the potential to grow into an engine of economic growth for the member states and to evolve into an economic powerhouse benefiting the entire region.

If one goes by the core economic yardsticks of trade and investment for evaluating the success of BIMSTEC, the highlight would be that BIMSTEC is poised to enter into a free trade regime. A recent study has shown that US$ 43 to 59 billion worth of trade in goods could potentially be generated under BIMSTEC FTA. During the negotiations, the member states have shown much understanding in bridging their differences on the sensitive list, dispute settlement mechanism, rules of origin and differential treatment to products from the four LDCs within BIMSTEC. Our experts should be concluding the negotiation over free trade in goods soon.

Ladies and gentlemen,

It is also important to take a look at how BIMSTEC has progressed since its launching on 6 June 1997, originally as BIST-EC. The Bangkok Declaration of BIMSTEC stated that the objective of the grouping would be to 'create an enabling environment for rapid economic development'. This objective was stipulated to be achieved through identification and implementation of specific cooperation projects in the sectors of trade, investment and industry, technology, human resource development, tourism, agriculture, energy, infrastructure and transportation. Since 1997, the grouping has made significant progress in achieving its objectives.

The First BIMSTEC Summit in 2004 added new depth and dimension to the organization. Clearly, the sub-regional arrangement of 1997 was transformed into a regional entity with the admission of Bhutan and Nepal.

At the first Summit (2004), the Leaders agreed to expansion of BIMSTEC areas of cooperation. The new areas were education, public health, terrorism and transnational crimes, small and medium-scale enterprises, environment, ICT, as well as natural disaster mitigation and management. Following the (8th) BIMSTEC Ministerial Meeting in Dhaka last December, the number of priority areas under BIMSTEC now stands at thirteen.

It is encouraging that progress has been made in the follow-up and implementation of the Summit Declaration. A number of initiatives have been taken in the priority areas. There are discernible interest among member states for ongoing initiatives in areas like energy, transport, counter-terrorism and tourism.

Another aspect worth noting is that BIMSTEC is gradually opening to different forms of cooperation. For the first time, the grouping decided to collaborate with ADB, in terms of undertaking a Transport and Logistic Study. The question of involvement of outside non-member States in BIMSTEC activities is also being thought of.

I consider the Dialogue, supported by the Sasakawa Foundation, as an important first step in terms of Japan's involvement in BIMSTEC. The reflections emerging out of this Dialogue could help the Government and Civil Society in Japan appreciate further the parameters of sectoral cooperation in BIMSTEC. At the same time, I hope, the Dialogue would demonstrate to Japan the potentials of cooperation existing within the BIMSTEC region as well as in the individual economies. A considered response of Japan on BIMSTEC could eventually draw both sides to concrete cooperation in various sectors.

Individually, Japan remains one of the largest bilateral development partners for all BIMSTEC countries. Japan is also a large trading partner and a source of major investment capital for the member states. Therefore, Japan's growing interest in BIMSTEC, as reflected through this three-year ongoing project, is of significant value and interest to our countries. It is worth mentioning that Japan has remained an active partner of SAARC for over a decade. At the historic 13th Summit of SAARC here in Dhaka, a decision has been taken to accord observer status to Japan, which would no doubt deepen understanding and collaboration between SAARC and Japan.

Ladies and Gentlemen,

As BIMSTEC approaches its second decade, and the scheme of sectoral cooperation gains momentum, the stakeholders at national levels, like the think-tanks, academia, private sector need to involve themselves more with this process. The involvement could be in the form of ideas, concrete proposals on sub-regional and regional initiatives and projects under BIMSTEC. Concrete undertakings in different sectors could be in conjunction with relevant governments or, even in collaboration with respective counterparts across the BIMSTEC countries. This Dialogue and Project stands out as an example of such undertaking. I believe, a deepening civil society cooperation will not only allow the governments to embark on bolder and visionary endeavours, this would also complement the efforts made at the inter-governmental level.

As you interact on sectoral issues, I would like to flag a few aspects for your reflection that we have been interacting within the Governments. These could be useful in enhancing BIMSTEC cooperation.

The first imperative is to ensure realization of the FTA. In order to progress in that direction, removal of all non-tariff and para-tariff barriers is critical. Same holds true for putting in place necessary trade facilitation measures. In my view, as soon as the FTA enters into force, its mandate needs to be made more robust and issues relating to harmonization of standards, quality control and certification need to be addressed.

Secondly, we should begin to explore possible areas of cooperation beyond the FTA in goods. BIMSTEC may look towards a customs union, eventually leading to an economic community. An ambitious target date could be 2020.

Thirdly, setting up of an institutional framework for monetary cooperation. There is also scope for cooperation in areas such as commercial banking and capital market.

Fourthly, the question of financing of BIMSTEC Projects. Since the group's genesis, BIMSTEC member states have been cooperating on the basis of financing drawn from member states. However, as BIMSTEC expands further, we would need to consider how to involve outside actors, such as non-member States, international financial institutions (IFIs) or private sector in financing sub-regional and regional projects.

Finally, the question of institutional issues. A decade has passed since the formation of our grouping. New members have been admitted. Areas of cooperation have expanded. The member states, since the last Ministerial Meeting in Dhaka has recognized the need for some form of institutional support for implementation of decisions. Questions of basic instruments like Charter and Rules of Procedure are being looked at.

I mention these so that you can look at the grouping's existing sectoral cooperation in a broader frame. I hope, your deliberations would address these areas and you would be able to come up with innovative ideas and recommendations. These would eventually help the member states forge an effective partnership.

Ladies and Gentlemen,

As the Dialogue reflects on Bangladesh's perspective in furthering economic cooperation in vital areas, namely trade and investment, transport and infrastructure, energy, fisheries, technology, tourism and environment, I would underline that Bangladesh remains fully committed to further consolidate meaningful cooperation under the BIMSTEC framework. Moreover, Bangladesh provides the bridge between South and South East Asia. Both of these regions have rich experiences and best practices.

During our Chairmanship, we have endeavored to strengthen this bridge of friendship, commonalities and vast reservoir of experience. An important cornerstone of our approach has been to seek active partnership with civil society and private sector.

We believe, it is through our shared commitment to partnership and cooperation that we can make a difference in the lives of our peoples. I am confident, your deliberations will contribute to the development of approaches and recommendations that would enhance the collective vision of BIMSTEC Leaders.

I thank you.

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