BBIN Motor Vehicle Agreement Protocol Finalised: Bhutan’s Role Pivotal in Regional Connectivity Push

BBIN Motor Vehicle Agreement Protocol Finalised: Bhutan’s Role Pivotal in Regional Connectivity Push

A decade after the landmark signing of the Motor Vehicles Agreement (MVA) between Bangladesh, Bhutan, India, and Nepal (BBIN), the four nations have finalized the text of the protocol required to operationalise the long-awaited cross-border transport framework. While Bhutan has not participated in recent trial runs, it has given its formal consent to the agreement and the protocol, reaffirming its strategic role in enhancing sub-regional connectivity.

Signed in Thimphu on June 15, 2015, the BBIN-MVA aims to facilitate seamless movement of passenger, personal, and cargo vehicles across borders, enhancing trade, people-to-people exchanges, and regional integration. The agreement represents the first of its kind in South Asia and is widely seen as a pragmatic response to the current dormancy of the South Asian Association for Regional Cooperation (SAARC), which has struggled to hold a summit since 2014.

The recently concluded protocol outlines detailed provisions on permits, fees, vehicle tracking systems, liability insurance, and customs facilitation. It also introduces regulatory standards for commercial vehicles in three categories—light (up to 7,500 kg), medium (7,500–12,000 kg), and heavy (over 12,000 kg). While Bhutan has opted to remain an observer in the pilot phase, it remains an integral signatory, supporting the framework’s long-term goals.

Observers, however, caution that India’s recent decision to withdraw certain transshipment facilities for Bangladeshi cargo may impede progress in executing the agreement, highlighting the fragility of regional logistics cooperation. Nevertheless, the Asian Development Bank (ADB), a key technical and financial backer of the MVA, continues to support infrastructure development and institutional harmonisation necessary for the agreement’s success.

Trial runs conducted in 2015 and 2016—covering routes such as Kolkata–Dhaka–Agartala, Dhaka–Delhi, and Dhaka–Kathmandu—demonstrated the feasibility of uninterrupted vehicular movement between signatory countries. Although Bhutan did not participate in these initial trials, officials maintain that its involvement remains vital for ensuring regional balance and sustainability of the agreement.

The protocol also lays the groundwork for institutional coordination through the establishment of National Land Transport Facilitation Committees, Joint Committees for dispute resolution, and customs sub-groups to regulate vehicle entry and exit. Additionally, a secure electronic platform is to be developed within two years to monitor vehicle and cargo movement and ensure safety compliance.

For Bhutan, the agreement offers long-term strategic advantages, particularly in diversifying trade routes, improving market access, and strengthening regional collaboration in line with the country’s Gross National Happiness-driven development philosophy. However, challenges such as infrastructure readiness, customs coordination, and regulatory harmonisation will need to be addressed through sustained investment and dialogue.

ADB-led assessments have identified the need for harmonised policies, vehicle standards, cross-border insurance frameworks, and upgraded infrastructure to ensure successful implementation. The bank has also recommended broader political consensus and public awareness to secure national support for the agreement.

Bhutan’s continued support for the BBIN framework reflects its commitment to regional cooperation rooted in mutual respect and shared development. While the implementation of the MVA remains a work in progress, the finalisation of the protocol signals a critical milestone in South Asia’s journey toward sustainable and inclusive connectivity.

Tashi Namgyal from Thimphu