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Post at: Jun 13 2022

BBIN Motor Vehicle Agreement

Why in News?

  • In early March 2022, Bangladesh, Bhutan Indian and Nepal attend a meeting over the BBIN Motor vehicle Agreement.
  • In this meeting, the countries discussed the upcoming step in operation of the MVA for the free flow goods and people between them.


  • The BBIN Motor vehicle Agreement (MVA) was signed at the BBIN transport Ministers meeting in Thimpu, Bhutan in June 2015.
  • BBIN MVA will allow the four countries to ply their vehicle in each other country for transportation of cargo and passengers.
  • To enter another country's territory, vehicles need to obtain an online electronic permit.
  • Under the agreement, there is no need for trans-shipment of good for one country's truck to another's at the border.
  • Cargo vehicles will have an electronic seal so that they can be tracked. Regulators will be alerted every time the door of the container opens

Ratification of BBIN MVA

  • Once the agreement is ratified by all four countries, it enters into force. Bangladesh India and Nepal ratified the agreements. 
  • Bhutan has not yet ratified, due to objections from opposition Parties. 
  • Bhutan wants to limit the number of vehicle entering its country. Bhutan has concerns regarding damage to the environment and impact on Bhutanese truckers.
  • Bhutan and India already have a bilateral agreement that allows seamless movement of vehicle between the two countries. So Bhutan's decision to not ratify the BBIN agreement will only affect its trade with Nepal and Bangladesh.
  • Technical and knowledge support to the meeting was provided by the Asian Development Bank (ADB).
  • World Bank, which has estimated that the implementation of the MVA will potentially see an increase in traffic - regional trade within South Asian.

Way Forward

  • The BBIN MVA can be a game - changer for neighborhood cooperation.
  • For First time these countries have decided to exchange their traffic right and Provides transit to cargo and passenger vehicles within and across international borders.
  • The primary goal is to develop functional transport corridors and subsequently convert them to economic corridors.
  • These economic corridors are excepted to play an instrumental role in strengthening existing value chains and creating new ones.

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