Bangladesh leads BIMSTEC amid political challenges; Chamber of Commerce cites risks and potential

Marking the 25th anniversary of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Bangladesh has assumed leadership of the regional bloc for the 2025–2027 term.

A recent press release from the International Chamber of Commerce, Bangladesh (ICCB) was published today (3 August), underscoring ongoing political tensions and a persistent trade gap that continue to challenge BIMSTEC's integration goals.

At the 6th Summit this April, member countries adopted the Bangkok Vision 2030, a roadmap for sustainable development aligned with the UN's Sustainable Development Goals and guided by Thailand's Bio-Circular-Green economic model.

The leadership position for Bangladesh arrives at a time when internal political uncertainty casts a shadow over the country's capacity to play the role of regional stabiliser. 

With political tensions between Dhaka and Delhi and ongoing unrest in Myanmar, hopes for stronger trade and integration for the alliance remain fragile. Yet this very challenge could define its chairmanship, either as a test of resilience or a missed opportunity. 

Keeping connectivity is at the heart of BIMSTEC's strategic agenda; with 267 infrastructure projects, including the India–Myanmar–Thailand Highway and Kaladan Transit Project, aimed at linking South and Southeast Asia through both land and maritime routes. 

However, the ICCB expresses serious concern as these projects have stalled due to structural delays and persistent political disruptions. 

Despite 25 years of collaboration, BIMSTEC's intra-regional trade remains quite low, standing at around $40 billion, while the estimated potential stands at a whopping $250 billion.

In comparison, ASEAN members conduct about 25% of trade within the bloc; BIMSTEC's internal trade figure stands at just 7%.
This trade gap is largely the result of long-standing delays in finalising a Free Trade Agreement (FTA), which has been under discussion since 2004. 

Non-tariff barriers, protectionist policies, and limited consensus among member states have slowed progress considerably, though the Bangkok Vision calls for renewed efforts.

Bangladesh, in its current role, has the diplomatic space to move the needle. Streamlining customs procedures, easing visa regulations, and enabling cross-border digital transactions could make regional trade more efficient and attractive to investors. 

For Bangladeshi sectors such as garments, agriculture, and pharmaceuticals, this presents a real opportunity to lower trade costs and diversify markets.

At the same time, Bangladesh's domestic political transitions and ongoing tensions with India pose a quiet but significant challenge to the credibility and coherence of its leadership. Stability at home will be key to building trust abroad.

The BIMSTEC Trade Facilitation Strategic Framework 2030, developed by the Asian Development Bank, offers a practical mechanism to enhance integration. Bangladesh's task now is to rally the political will among member states to operationalise such frameworks and reinvigorate institutional cooperation.

With multiple variables at play, from Myanmar's instability to protectionist hesitations, questions remain about BIMSTEC's capacity to evolve into a robust economic bloc. But with strategic focus and careful diplomacy, Bangladesh could turn this moment into a turning point.

As the region looks on, the expectation is not perfection but progress. Whether Bangladesh can align fragmented interests toward a common regional vision remains to be seen, but the chair it now occupies has rarely held greater potential.