Nepal India Motor Vehicle Agreement
Second, the National Council of Bhutan, the Tshogdu House of Lords (National Assembly), did not ratify the agreement because it “does not comply with immigration laws,” “endangers the environment and security,” “too small to be flooded by vehicles from three countries.” Bhutan therefore remains free of a-territorisatorium. Fourth, the installation of preconditions for the implementation of approved agreements, including computer systems, infrastructure, monitoring and regulatory systems, is still far from being put in place today. Finally, there are still concerns about safeguards concerning “the rights and obligations of all parties under other international agreements and bilateral agreements within the group, including those relating to landlocked countries.” Bangladesh, Bhutan, India and Nepal signed a sub-regional motor vehicle agreement (MVA) in June 2015 to regulate passenger, passenger and freight traffic between the four countries. This agreement will institutionally and physically accelerate the implementation of rules to facilitate land transport and allow the exchange of traffic rights. It should facilitate the international traffic of goods, vehicles and people. This complementary instrument to existing bilateral transport agreements would thus help to increase contacts between people, trade and trade in people. The first-ever meeting of transport ministers from BBIN countries, held in Bhutan in June 2015, gave the Asian Development Bank (ADB) the technical and facilitation role. The agreement will enter into force after being ratified by the four Member States. The agreement was ratified by Bangladesh, India and Nepal.
The lower house of the Bhutanese Parliament approved the agreement in early 2016, but was rejected by the House of Lords in November 2016.  Bhutan has requested that the number of vehicles entering its territory be capped.  In May 2017, the media reported that the Bhutanese government had ordered the Indian government to continue the agreement without Bhutan, as the Bhutanese government was unable to ratify the agreement in the House of Lords because of objections from opposition parties.  Opponents of the measure in Bhutan said the agreement would increase the movement of vehicles from other countries, affecting Bhutanese truck drivers and also causing environmental damage. A bilateral agreement between Bhutan and India already allows for smooth movement between the two countries. Therefore, Bhutan`s decision not to ratify BBIN MVA would only affect its trade with Nepal and Bangladesh. The Bhutanese government has asked other BBIN members to continue the agreement and has also said it will try to ratify the MVA after the country has held parliamentary elections in 2018. Due to the strained relations between Bhutan and Nepal, the Tshering Tobgay government feared that the registration of Nepalese trucks for Bhutan would anger voters.  India called Bhutan`s decision a “reverse” and not a “rejection” of the agreement, which states that it is natural that not all members progress at the same pace and that India will continue its engagement with Bhutan on this issue.   India proposed an agreement on SAARC motor vehicles at the 18th OSCE Summit in Kathmandu in November 2014.