BIMSTEC must adapt to global shifts and future challenges

The sixth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit will be held in Bangkok, Thailand, from April 2-4.

- By Selim Raihan

The shifting world order, which denotes an evolving geopolitical landscape characterised by shifting power dynamics, technological advancements, and interconnectedness, necessitates BIMSTEC to adopt a novel approach to regional cooperation.

One major challenge is the escalation of uncertainty, a notable trend in the global trade regime. The undermining of multilateralism poses a significant threat to the WTO’s rule-based system, creating an unpredictable environment for international trade. Additionally, geopolitical realignments, such as the US-China and US-Canada trade wars, alongside Trump’s reciprocal tariff, highlight the shifting dynamics and rivalries in global trade. These developments drive active trade diversification and regionalisation, exemplified by the “China+1” strategy.

Protectionism is on the rise, too, with tariffs, non-tariff measures, and trade restrictions becoming increasingly prevalent. Supply chain innovation is also transforming global trade as automation, AI, and ethical supply chains gain prominence. The rise of the Global South signifies another important trend, with India, ASEAN, and Africa assuming an increasingly vital role in the global economy.