The Union Cabinet recently gave its approval for the signing of a Memorandum of Understanding (MoU) with Bhutan. The aim of the MoU is to encourage collaboration in the field of environment protection and management of natural resources. The basis of this agreement is to establish a long-term cooperation that considers equity, reciprocity, and mutual benefits, while taking into account each country’s laws and legal provisions.
A Look at the Background
In 2013, the Central Pollution Control Board (CPCB) of India and the National Environment Commission (NEC) of Bhutan’s government signed an MoU which expired in 2016. Considering the benefits from this earlier collaboration, both parties have now decided to continue their cooperation in the field of environment, reinforcing the Indo-Bhutan relationship.
Details of the New MoU
The MoU will come into force on the day it’s signed and will remain effective for ten years. Its areas of cooperation encompass air, waste, chemical management, climate change, and any other joint decisions. The pact also sees the exchange of best practices and expertise in sustainable development through public and private sectors and research institutions.
Joint Working Group
The MoU sets the stage for joint projects in areas of shared interest. This includes planning joint working group/bilateral meetings to oversee the progress of activities. It also ensures respective ministries/agencies are updated regarding the progress and achievements.
Indo-Bhutan Relationship
The Indo-Bhutan Treaty of Peace and Friendship, signed in 1949, solidified the perpetual peace, free trade, and commerce between the two nations. In 2007, changes were made to foster Bhutan’s sovereignty and discard the need for India’s guidance on foreign policies. Both countries also form a part of multilateral forums such as SAARC, BBIN, and BIMSTEC.
Hydropower and Trade Cooperation
The 2006 Agreement on Cooperation in Hydropower saw India promising to assist Bhutan in the development of a minimum of 10,000 MW of hydropower by 2020. The trade between both countries is regulated by the India Bhutan Trade and Transit Agreement 1972, renewed last in November 2016. This agreement established a free-trade regime between the two nations and provides for duty-free transit of Bhutanese exports to third countries.
Economic Assistance and Educational and Cultural Cooperation
India has been the primary development partner of Bhutan since the country’s First Five Year Plan launched in 1961. India has committed Rs 4500 crore towards Bhutan’s 12th FYP (2018-23). Similarly, cultural cooperation is robust, with a significant number of Bhutanese students studying in India under scholarships provided by the Indian government.
The Way Forward
Given the indispensable role environment and natural resources play in sustainable development, collaboration between these neighbour nations is crucial. Recognizing the value of their rich resources, and working together towards environmental sustainability would further facilitate the Indo-Bhutan relationship towards peace and development.