Motor Vehicles Agreement (MVA) of the BBIN

Q Why is it in News ?

A With Bhutan continuing to sit out the Motor Vehicles Agreement (MVA) of the sub-regional Bangladesh-Bhutan-India-Nepal (BBIN) grouping, a meeting of the other three countries was held to discuss the next steps in operationalizing the agreement for the free flow of goods and people between them.

Q What is Motor Vehicles Agreement (MVA)?

A 

• India, Nepal, Bhutan and Bangladesh signed a Motor Vehicles Agreement (MVA) for the Regulation of Passenger, Personal and Cargo Vehicular Traffic among the four South Asian neighbours.
• It was signed on 15 June 2015 at the BBIN transport ministers meeting in Thimpu, Bhutan.
• The act will facilitate a way for a seamless movement of people and goods across their borders for the benefit and integration of the region and its economic development.

Q What are key terms of the Agreement ?

A 

• Trans-shipment of goods: Cargo vehicles will be able to enter any of the four nations without the need for trans-shipment of goods from one country’s truck to another’s at the border.
• Free transport: The agreement would permit the member states to ply their vehicles in each other’s territory for transportation of cargo and passengers, including third-country transport and personal vehicles.
• Electronic permit: As per the agreement each vehicle would require an electronic permit to enter another country’s territory, and border security arrangements between nations’ borders will also remain.
• Ultra-security: Vehicles are fitted with an electronic seal that alerts regulators every time the container door is opened.

Q What is the implementation status of the agreement ?

A 

• The agreement will enter into force after it is ratified by all four member nations.
• The agreement has been ratified by Bangladesh, India and Nepal.
• The lower house of the Bhutanese parliament approved the agreement in early 2016, but it was rejected by the upper house in November 2016.
• Bhutan has requested for a cap to be fixed on the number of vehicles entering its territory

Q What can be the way forward?

A 

• India remains “hopeful” that Bhutan could change its position on the project, it was decided at a meeting in November 2021 to go ahead for now, given that there are no new signals from Thimphu on the project.
• Progress on the seven-year-old project has been slow, despite several trial runs being held along the Bangladesh-India-Nepal road route for passenger buses and cargo trucks.
• There are still some agreements holding up the final protocols.

Q What is Bangladesh  Bhutan  India Nepal (BBIN) Initiative ?

A 

• BBIN Initiative is a sub-regional architecture of countries in Eastern South Asia, a sub-region of South Asia.
• The group meets through the official representation of member states to formulate, implement and review quadrilateral agreements across areas such as water resources management, connectivity of power, transport, and infrastructure.