Driving Across the South Asian Borders: The Motor Vehicle Agreement Between Bhutan, Bangladesh, India and Nepal

The benefits of strengthening physical connectivity in a geographically contiguous region are increasingly being recognised. These links are expected to increase economic activity and people-to-people interaction, leading in turn to regional and sub-regional integration. In this backdrop, the Motor Vehicle Agreement (MVA) signed among Bangladesh, Bhutan, India and Nepal is expected to facilitate cross-border movement of vehicles, thereby reducing cost of transportation and boosting commercial ties. The four countries have taken a significant step in upgrading their bilateral relations into a diversified and constructive engagement. However, challenges in the implementation of the agreement remain, requiring careful consideration. This paper examines the circumstances leading to the signing of the agreement and explores its implications for the eastern part of South Asia.