TRADE IN SOUTH ASIA IN THE NAME OF SUB-REGIONAL TRADE CORRIDOR

Abstract

The development of the corridor for the Bangladesh, Bhutan, India, and Nepal (sub-regional) Motor Vehicle Agreement is rooted in the formation of the South Asian Growth Quadrangle (SAGQ), a collective organization established by the four South Asian nations. To meet its goal, SAGQ was tasked with improving cross-border connectivity, boosting trade among member countries, and strengthening sub-regional economic integration. The strategic location of North East India implies that the sub-regional corridor will significantly impact the development of the region. over the past 20 years, despite dedicated programs and attempts from multiple stakeholders within the SAGQ to promote development within sub-regional, not enough has happened to facilitate regional trade, transport, and the movement of goods and people across the region. Consider the existing state of affairs: intraregional trade among South Asian countries accounted for only 5 percent of their trade in 2015. This low level of regional integration in South Asia is manifested in poor intraregional investment. Higher levels of integration to ensure smooth access to regional and international markets is even more important for smaller, less developed, and landlocked nations such as Nepal and Bhutan.