BIMSTEC and Bhutan

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organisation comprising seven member states: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. Established in 1997 as BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation), the grouping expanded to include Myanmar in 1997, and Bhutan and Nepal in 2004. BIMSTEC bridges South and Southeast Asia, creating a framework for cooperation among nations linked by the Bay of Bengal basin. For Bhutan, a landlocked Himalayan kingdom with no direct Bay of Bengal access, BIMSTEC membership represents a strategic avenue for regional integration and economic diversification.^[1]

Bhutan's Accession and Rationale

Bhutan joined BIMSTEC in February 2004, along with Nepal, during the organisation's expansion phase. The decision to join reflected several strategic calculations by the Bhutanese government. First, BIMSTEC offered a multilateral platform that complemented Bhutan's membership in the South Asian Association for Regional Cooperation (SAARC), which had been hampered by India-Pakistan tensions. BIMSTEC, by excluding Pakistan and including Thailand and Myanmar, provided a less politically fraught arena for regional cooperation.

Second, Bhutan recognised that connectivity — physical, digital, and economic — was essential for its long-term development. As a small, landlocked country sandwiched between India and China, Bhutan's economic options were constrained by geography. BIMSTEC's focus on trade facilitation, transport connectivity, and energy cooperation aligned with Bhutan's interest in accessing broader markets and supply chains.^[2]

Third, BIMSTEC membership allowed Bhutan to develop diplomatic relationships beyond its traditional bilateral partnerships — primarily with India and, to a lesser extent, Bangladesh. Engagement with Thailand and Myanmar, in particular, opened new channels for technical cooperation, cultural exchange, and development assistance.

Sectors of Cooperation

BIMSTEC organises cooperation across multiple sectors, with each member state leading specific areas. The current priority sectors include trade and investment, transport and communication, energy, tourism, technology, fisheries, agriculture and food security, public health, people-to-people contact, environment and climate change, counter-terrorism and transnational crime, poverty alleviation, and cultural cooperation.

Energy

Energy cooperation is arguably the most significant BIMSTEC sector for Bhutan. As a major hydropower producer with approximately 30,000 MW of estimated potential and a bilateral hydropower partnership with India already generating substantial revenue, Bhutan has a natural interest in regional energy markets. BIMSTEC's energy cooperation framework envisions a regional power grid connecting member states, which could allow Bhutan to export surplus electricity to Bangladesh, Myanmar, or other members beyond India. The BIMSTEC Grid Interconnection initiative, while still in planning stages, aligns with Bhutan's long-term economic strategy of becoming a regional clean energy hub.

Trade and Connectivity

BIMSTEC has pursued a Free Trade Agreement (FTA) among member states since 2004, though negotiations have progressed slowly. For Bhutan, whose trade is overwhelmingly concentrated with India (over 80% of total trade), a BIMSTEC FTA could provide opportunities for market diversification. The organisation has also discussed multimodal transport corridors, including the potential for road and rail links through northeastern India that could connect Bhutan more directly with Bangladesh and Myanmar.

Tourism and Culture

Bhutan's tourism sector, built around the "high value, low volume" model, could benefit from BIMSTEC's tourism promotion initiatives. The Buddhist heritage shared by Bhutan, Myanmar, Sri Lanka, and Thailand provides a foundation for cultural tourism circuits and joint marketing efforts. BIMSTEC has organised Buddhist heritage tourism projects that align with Bhutan's cultural assets, including its ancient monasteries, festivals, and living Buddhist traditions.

Challenges and Limitations

Despite its potential, BIMSTEC has faced significant challenges that limit its practical impact on member states, including Bhutan. The organisation has been criticised for slow institutional development, insufficient funding, and a lack of binding commitments. The BIMSTEC Secretariat, established in Dhaka in 2014, operates with modest resources and limited staff. Progress on flagship initiatives like the FTA and grid interconnection has been glacial compared to similar efforts in ASEAN or the European Union.^[3]

For Bhutan specifically, BIMSTEC engagement carries the inherent challenge of capacity constraints. As the smallest member state by population and GDP, Bhutan has limited diplomatic and technical resources to devote to multilateral engagement. The country must balance its BIMSTEC participation against demands from SAARC, UN agencies, and its critical bilateral relationships.

Myanmar's political crisis following the 2021 military coup has further complicated BIMSTEC dynamics, raising questions about the organisation's ability to address governance and human rights concerns within its membership.

Recent Developments

The Fifth BIMSTEC Summit, held in Colombo, Sri Lanka, in March 2022, adopted the BIMSTEC Charter for the first time, giving the organisation a formal legal foundation. The summit also approved three new agreements on mutual legal assistance in criminal matters, cooperation between diplomatic academies, and a technology transfer facility. Bhutan participated actively in these negotiations, and the charter's emphasis on consensus-based decision-making aligned with Bhutanese preferences for non-coercive multilateralism.^[4]

Looking ahead, BIMSTEC's relevance for Bhutan may increase if the Gelephu Mindfulness City project, announced in late 2023, proceeds as planned. The GMC's location at Bhutan's southern border with India positions it as a potential node in BIMSTEC connectivity corridors, and the project's emphasis on attracting international investment and trade could benefit from regional economic integration frameworks.

See Also

• Bhutan-India Relations
• SAARC and Bhutan
• Foreign Policy of Bhutan
• Gelephu Mindfulness City

References

1. BIMSTEC Official Website
2. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation — Wikipedia
3. BIMSTEC at 25: Priorities for the Next Decade — Observer Research Foundation
4. 5th BIMSTEC Summit — BIMSTEC Secretariat

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