However, this growth rectangle must take into account several main concerns and the restrictions of the first level. Will it become an official sub-regional organization that would include in its agenda other important activities such as investment, trade, tourism, infrastructure, water and energy? Unlike SAARC and BIMSTEC, could it be very project-specific? Bangladesh, Bhutan, India and Nepal signed a sub-regional motor vehicle agreement (VPA) in June 2015 to regulate passenger, passenger and cargo traffic between the four countries. This agreement will institutionally and physically accelerate the implementation of land transport facilitation agreements and allow for the exchange of traffic rights. It should facilitate international traffic in goods, vehicles and people. This complementary instrument to existing bilateral transport agreements would thus contribute to broadening contact, trade and economic exchanges between people. The first-ever meeting of BBIN transport ministers, held in Bhutan in June 2015, entrusted the technical and facilitation role to the Asian Development Bank (ADB). New Delhi: As Pakistan launches an ambitious multilateral agreement to connect South Asian nations on road and rail networks, India, Nepal, Bhutan and Bangladesh have joined forces to conclude a similar agreement to promote regional trade and cultural exchanges between them. Once concluded and signed, regional rail and road agreements should improve transport links with the region and promote trade and people-to-people contacts. Other objectives include the promotion of economic integration in the region and the implementation of the corresponding parts of the South Asian Free Trade Area Agreement.
In addition to facilitating diversified country-to-country connectivity, this conglomerate will achieve economies of scale, build supply chains, build micro, small and medium-sized enterprises and interregional energy networks, attract investment and technology exchanges, and develop projects dispersed across border and border communities. They can manage disasters together, monitor natural resources and, most importantly, cause market expansion, both for manufacturing and services. In another way, this growth rectangle could prove to be a miniaturized, doubly productive and more functional version of SAARC and BIMSTEC. While the multimodal connectivity agreement aims to open up transport activities in the South Asian region across borders, the Asian Development Bank (ADB) is providing financial assistance for the construction of road and rail networks in the region under the South Asia Subregional Economic Cooperation (SASEC) program. The agreement provides for the promotion of safe, economically efficient and environmentally friendly road transport in the subregion and will continue to assist each country in establishing an institutional mechanism for regional integration. The BBIN countries will benefit from reciprocal international passenger and freight transport for the overall economic development of the region. At a saarc summit in 2010, the idea of opening up road transport was advocated. The summit declared 2010-20 a decade of intra-regional connectivity in Saarc and agreed to intensify negotiations on the conclusion of agreements on vehicles and railways. Despite a series of sub-regional transport projects under the South Asia Sub-regional Economic Cooperation (SASEC- 2002), supported by the ADB, a new initiative was launched in 2015, under the acronym BBIN, mainly focusing on the Eastern Nationalsia sub-region. What may have triggered this sudden step towards sub-regionalism was the failure to sign a SAARC agreement on motor vehicles and a SAARC regional rail agreement at the 18th Kathmandu Summit in November 2014.
With regard to this anti-car agreement, triggered by the Pakistani withdrawal syndrome, the summit agreed “to hold within three months a meeting of transport ministers in order to conclude the authorisation agreements”. . . .