India and Six Neighbors Sign Maritime Trade Pact to Sidestep Trump Tariffs

Seven Bay of Bengal nations signed a maritime transport cooperation agreement on Thursday to boost regional connectivity and trade.

The pact was signed in Bangkok, Thailand’s capital, during a meeting of foreign ministers from the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which includes India, Thailand, Myanmar, Bangladesh, Bhutan, Nepal, and Sri Lanka.

Thai Foreign Ministry spokesperson Nikorndej Balankura told reporters that the signing “coincides with the tariffs,” referring to the tariff hikes imposed by U.S. President Donald Trump.

“This further highlights the urgency and importance of our efforts to connect and facilitate the movement of people, goods, and services through multimodal transport,” he said.

However, during the ministerial meeting, he noted no formal discussion of Trump’s new tariffs.

The specifics of the BIMSTEC agreement—such as how the nations plan to enhance regional connectivity—have not yet been disclosed.

“We are pushing for full connectivity—land, sea, and air,” the spokesperson said, adding that members are currently working to connect over a dozen ports in Sri Lanka, India, Bangladesh, Myanmar, and Thailand.

The new U.S. tariffs are “a wake-up call for everyone to discuss how we can consolidate our connectivity efforts, and we must discuss establishing a free trade area.”

Among BIMSTEC nations, Myanmar and Sri Lanka were hit hardest, with reciprocal U.S. tariffs of 45% and 44%, respectively—the highest in the group. Bangladesh and Thailand faced tariffs of 37%, while India was levied at 27%.

Shabana Barua, associate professor at the Jindal School of International Affairs in India, told Nikkei Asia that the pact “reflects very positively on the group and intraregional trade overall,” particularly from India’s perspective, given that most of its trade in the BIMSTEC and Southeast Asian region is maritime-based.

When asked about a timeline for finalizing a broader BIMSTEC trade agreement, the Thai Foreign Ministry spokesperson said ministers agreed that such a deal “should be concluded at the earliest opportunity.” Washington’s imposition of reciprocal tariffs, he said, makes the case for a free trade area even more timely.

Raj Kumar Sharma, senior researcher at the New Delhi-based think tank NatStrat, said the U.S. tariff measures will likely speed up BIMSTEC’s negotiations for a free trade agreement.

“This will push countries in the region to pursue local solutions to the global disruptions caused by Trump’s fascination with using tariffs as a weapon—even against friendly nations,“ he told Nikkei Asia.

Source: Valor Econômico

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