Kathmandu, September 12:

The seventh meeting of BIMST-EC started in Thailand beginning today to discuss and resolve issues surrounding trade in services, rules of origin, dispute settlement mechanisms and customs procedures among member countries to boost trade and businesses. According to the ministry of industry, commerce and supplies, a six member delegation led by joint secretary Ngaindra Prasad Upadhyaya from Nepal left for Thailand yesterday to participate at the meeting which will run from September 12 to September 16.

The seventh round of BIMST-EC trade negotiation committee (TNC) meeting will discuss free trade isses during the five-day long meeting. BIMST-EC, Bay of Bengal Initiative for Multi-Sector Technical and Economic Cooperation (BIMST-EC), members are trying hard for free trade from July 2006. According to officials of MOICS, discussion is taking place to reduce customs tariff upto 15 to 20 per cent for goods, which are grouped in negative list. Over 5,000 goods are listed in the negative list of member countries of BIMST-EC.

Nepal’s goods in negative lists include agro and herbal-products, which are about 1,200 products. According to BIMST-EC provision, two types of customs rates are required in normal track – zero per cent and one to five per cent. Trade volume among the BIMST-EC member countries stands at over $7.3 billion, which is only four per cent of the total trade volume. The issue of special visa for BIMST-EC member countries is also being discussed. BIMST-EC aims to enhance economic cooperation in the region. Nepal had become a member of BIMST-EC last year. Its other members are Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan.

The BIMST-EC meeting agreed that a free-trade area framework agreement would come into force from July 2006.