ASEAN member country Myanmar has joined the South Asia Subregional Economic Cooperation (SASEC) as its seventh member, enhancing trade and business links between South Asia and Southeast Asia, according to a release by Asian Development Bank (ADB).
“Myanmar’s participation in SASEC is expected to further promote and accelerate inter-subregional cooperation between South Asia and Southeast Asia and beyond, and will contribute significantly to achieving the future development goals of both subregions,” said Ronald Butiong, director for regional cooperation for ADB’s South Asia Department.
SASEC countries—Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka—share a common vision of boosting intraregional trade and cooperation in South Asia, while also developing connectivity and trade with Southeast Asia through Myanmar, as well as with China and the rest of the global market.
The members coordinate the planning of projects and activities to increase economic growth by building transport connectivity, facilitating faster and more efficient trade, and promoting cross-border trade.
Since 2001, SASEC members have invested more than US$9 billion in development projects which have connected markets and businesses over the last 15 years in the subregion, said ADB, which serves as the SASEC Secretariat.
“Myanmar is key to realizing greater connectivity and stronger trade and economic relations between the SASEC subregion and the countries of East and Southeast Asia. Myanmar’s membership in SASEC can offer a host of opportunities for realizing synergies from economic cooperation in the subregion,” said Economic Affairs Secretary Shaktikanta Das of India’s Ministry of Finance.
Road corridors in Myanmar provide the key links between South Asia and Southeast Asia, while ports in the country can provide alternate routes and gateways to the landlocked northeastern region of India.
Transport linkages between South and Southeast Asia will also become more attractive to businesses once ongoing and planned motor vehicle agreements are finalized and implemented. Negotiations are underway to allow passenger, personal, and cargo vehicles to cross international borders much faster and with fewer border formalities, saving time and money, said the report.
In 2016, the SASEC countries approved the SASEC Operational Plan 2016-2025, a 10-year strategic roadmap which introduced economic corridor development as a fourth sectoral area of focus to promote synergies and linkages between economic corridors across SASEC countries. This will help optimize development gains in the subregion, including industrial growth and competitiveness, the creation of high-quality jobs, increased productivity, and strengthening existing value chains.
Myanmar’s membership comes in advance of the first SASEC meeting of finance ministers that will be held in New Delhi on April 3, 2017. SASEC members will announce their vision for SASEC to accelerate and sustain the growth momentum in the region by unlocking their natural resources, industry, and infrastructure through subregional cooperation.
Photo: Roderick Eime
