BLOG SURF: Vehicle deal

South Asia is one of the least integrated subregions in Asia with countries trading more with nations elsewhere in Asia than with their neighbors.

This is, in some part, because South Asia has fewer of the cross-border agreements – and less of the physical infrastructure  that ASEAN, for example, has.

When vehicles can move easily across borders, transport costs fall, and goods become cheaper and easier to deliver. This, in turn, helps to develop more efficient supply chains and, along with it, spurs foreign direct investment, economic growth, and jobs.

The MVA implementation will help improve the efficiency of transport and trade facilitation in the subregion.

This could potentially increase intraregional trade within South Asia by almost 60% and with the rest of the world by over 30% according to a World Bank study.

Certainly, as with all groundbreaking shifts, we still have some way to go.