Intraregional trade in South Asia accounts for barely five percent of the region s total trade-just a fraction of the 25 percent for the ASEAN region. Bilateral trade between Bangladesh and India represents only 10 percent of Bangladesh s total foreign trade, and one percent of India s trade. A key factor for the low numbers is the sub-optimal transport integration in the region.
Transport integration agreements in South Asia therefore are crucial for creating cross-border integrated transport markets in the region. The Motor Vehicles Agreement (MVA)-signed by Bangladesh, Bhutan, India, and Nepal (BBIN) in 2015-is a cornerstone of that integration. If implemented in full, it could lead to seamless movement of passenger, personnel, and cargo vehicles across the South Asian countries.