India and Bhutan
- Bhutan serves as a strategic buffer state for India, providing a protective barrier against potential security threats from the north. The geographical proximity of Bhutan is crucial for India’s defense and national security
- India and Bhutan share deep-rooted historical and cultural ties. The Treaty of Friendship between India and Bhutan, signed in 1949, lays the foundation for their close relationship. This treaty underscores mutual respect for each other’s sovereignty and territorial integrity
- India has played a key role in assisting Bhutan in maintaining its security and sovereignty. India provides military assistance and cooperation, contributing to Bhutan’s defense capabilities and enhancing regional stability
- The hydropower sector is a vital aspect of the bilateral relationship. India has been actively involved in assisting Bhutan in developing its hydropower potential. Several joint projects have been undertaken, contributing to Bhutan’s economic development and strengthening economic ties between the two countries
- India is a major economic partner for Bhutan, providing financial and developmental assistance. The economic cooperation extends to various sectors, including agriculture, education, healthcare, and infrastructure development
- The cultural affinities and people-to-people ties between India and Bhutan are strong. Shared values, religious beliefs, and cultural practices have fostered a sense of unity and understanding between the two nations
- Bhutan maintains a diplomatic alignment with India on regional and international issues. Both countries often coordinate their positions on matters of global importance, contributing to shared diplomatic objectives
- Given the fragile Himalayan ecosystem shared by both nations, India and Bhutan collaborate on environmental protection and sustainable development. Joint initiatives address challenges such as climate change, biodiversity conservation, and natural resource management
- Bhutan plays a constructive role in regional stability and contributes to initiatives aimed at fostering cooperation among South Asian nations. Its engagement in regional forums aligns with India’s vision for a stable and integrated South Asia
- The treaty acknowledges the independence and sovereignty of Bhutan. India recognizes Bhutan’s territorial integrity, and both countries agree not to interfere in each other’s internal affairs
- Both nations commit to cooperating closely on matters relating to their national interests and security. India agrees to assist Bhutan in defending its independence and sovereignty
- The treaty emphasizes the guiding principles of consultation and cooperation between India and Bhutan in matters affecting their mutual interests. The nations agree to consult with each other on foreign and defense affairs
- The revised treaty, while reiterating the commitment to Bhutan’s sovereignty, includes a clause on non-aggression. It states that neither country shall allow the use of its territory for activities harmful to the national security and interest of the other
- The revised treaty expands the scope of consultation on foreign policy matters. Both nations agree to coordinate with each other on issues affecting their national security, and Bhutan acknowledges India’s guidance on foreign affairs
- The revised treaty reflects the growing importance of economic cooperation, particularly in the field of hydropower. India and Bhutan commit to developing hydropower projects in Bhutan with India as the primary market for the surplus power
- The treaty emphasizes the development of trade, commerce, and economic cooperation between the two countries, recognizing the need for mutual benefit and the enhancement of economic ties
- The revised treaty includes additional protocols outlining specific aspects of cooperation, such as the construction of river training works, trade, and transit arrangements
The Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement is aimed at facilitating seamless cross-border movement of goods and passengers among the member countries. The agreement, signed in 2015, was designed to enhance regional connectivity and economic cooperation.
While Bhutan initially expressed reservations about certain provisions of the agreement, such as concerns related to its impact on the environment and local businesses, the government of Bhutan later conveyed its commitment to addressing these concerns through discussions and negotiations with the other BBIN member countries.
Bhutan’s approach to regional agreements reflects its careful consideration of the potential implications for its unique socio-economic and environmental conditions. Any updates or changes in Bhutan’s stance on the Motor Vehicle Agreement would be reflected in official statements from the Bhutanese government or through diplomatic channels
While India and Bhutan signed the Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicles Agreement (MVA) in June 2015, Bhutan ultimately decided not to ratify it due to several concerns.
Here are the key points:
The genesis of the project traces back to the failure of the South Asian Association for Regional Cooperation (SAARC) to reach a consensus on a regional motor vehicles agreement in 2014. This disagreement primarily stemmed from opposition by Pakistan.
Initiation: The BBIN Motor Vehicle Agreement, focusing on the regulation of passenger, personal, and cargo vehicular traffic among the four countries, was officially inked during a meeting of transport ministers in Thimpu on June 15, 2015.
Objective: The successful implementation of the Motor Vehicle Agreement (MVA) through the finalization of the Passenger and Cargo Protocols is envisioned to unlock the full potential of trade and people-to-people connectivity among the BBIN countries, fostering increased sub-regional cooperation.
Bhutan’s Hesitation: In 2017, Bhutan faced a setback as it temporarily withdrew from the BBIN project due to the lack of parliamentary approval for the MVA. Despite this, the other three countries proceeded with the agreement.
External Funding: The Asian Development Bank has been a key supporter of the project under its South Asian Subregional Economic Cooperation program. Requests have been made for prioritizing approximately 30 road projects, each valued at billions of dollars. The World Bank, estimating a potential 60% increase in regional trade within South Asia with the MVA’s implementation, has expressed interest in providing infrastructure support.
Outstanding Issues: Several agreements crucial for the finalization of protocols still linger. These include matters such as insurance, bank guarantees, and specifications regarding the size and frequency of freight carriers entering each country. Efforts are underway to resolve these issues in the current year before initiating bus and truck movements among the nations
Reasons for Rejecting BRI:
- Strategic concerns: Bhutan maintains close ties with India, which views BRI with suspicion due to potential security implications and debt traps. Joining BRI could damage Bhutan’s relationship with India, a crucial strategic partner.
- Economic considerations: Bhutan’s unique, environmentally focused development model prioritizes sustainability and low-carbon growth. Concerns exist that BRI projects might prioritize large-scale infrastructure and disregard environmental risks.
- Domestic factors: Public opinion in Bhutan remains divided, with some questioning the transparency and potential drawbacks of BRI projects.
- Alternatives: Bhutan prefers bilateral agreements with partners who align with its development goals and respect its environmental concerns
China’s Response:
- Economic incentives: China has offered attractive financial packages and infrastructure development to lure Bhutan into BRI, emphasizing potential economic benefits.
- Diplomatic efforts: China has engaged in regular diplomatic discussions with Bhutan, attempting to address concerns and highlight BRI’s potential advantages.
- Boundary disputes: Unresolved border disputes between Bhutan and China complicate their relationship and remain a hurdle to closer cooperation
Current Status:
- As of February 2024, Bhutan remains outside the BRI. Although Bhutan and China engage in dialogue, no major BRI projects are underway in the country.
- Recent developments, like the 2023 visit of the Bhutanese Foreign Minister to China, might suggest some movement in their relationship, but whether this translates into BRI participation remains unclear
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