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Tags Current Affairs

BBIN motor vehicle agreement

Date: 11 March 2022 Tags: India & World


India, Nepal and Bangladesh have signed a memorandum of understanding (MoU) for implementing the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement (MVA).



  • The agreement was conceived after South Asian Association for Regional Cooperation (Saarc) could not arrive at an agreement for vehicular movement.

  • This was mainly due to opposition from Pakistan. It further suffered setback when Bhutan withdrew from agreement due to domestic issue.

  • The remaining countries decided to go ahead and implement the agreement. The MoU to be signed was finalised at a meeting held in New Delhi during March 7-8.



  • The agreement will enable seamless movement between themselves for facilitating trade and people-to-people contact.

  • The agreement will help in fostering greater sub-regional cooperation.

  • Cargo vehicles will be fitted with an electronic seal with a GPS tracking device, there is no need to undergo customs clearance at the border.

  • Cargo vehicles will have an electronic seal so that they can be tracked. Regulators will be alerted in case the door of the container opens.



 Seamless electrical grids, shared access to road, rail, air and port infrastructure, and ease of travel will all be developed.


Opposition from Bhutan

  • Bhutan has not ratified, due to objections from opposition parties. It has concerns about damage to the environment and impact on local truckers.

  • Non-ratification will only affect its trade with Nepal and Bangladesh as it already has agreement that allows seamless movement of vehicles with India.

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