Bangladesh, Burma: Maritime Dispute Resolation

Bangladesh, Burma: Maritime Dispute Resolution
Posted by Animesh Roul on June 7, 2010. Filed under Bangladesh, Burma, Maritime Security, Reading, Writing & Speeches.
In January this year both Bangladesh and Burma (Myanmar) have agreed to settle the longstanding maritime dispute over offshore oil and gas rights in the Bay of Bengal. They have reportedly demarcated the disputed sea boundary following the principles of equidistance and equity of resources. But again, two months later, in March 2010, Myanmar has proposed to draw a new line somewhere near the imaginary ‘Friendship line’ (close to St Martins Island) to demarcate the maritime boundary with Bangladesh.

The situation deteriorated in November 2008 (Read my commentary on the issue “Standoff in the Bay of Bengal” ) when Bangladesh deployed warships and army along its border with Myanmar over the latter’s bid to explore oil and gas in the disputed maritime zone. Myanmar dismissed Bangladesh’s claims on this oil-rich area as “unlawful” and vowed to continue exploration. India, the largest of the three littoral countries, has remained a mute spectator so far. Other than India, China and South Korea are also in the race for exploration of hydrocarbons in the Bay of Bengal. This unresolved issue could emerge as a major bone of contention that would trigger future resource conflict among Southeast Asian neighbors.

A recently published paper titled “The Maritime Boundary Dispute between Bangladesh and Myanmar: Motivations, Potential Solutions, and Implications” (Asia Policy, National Bureau of Asian Research, Number 10, July 2010) examines the issue in detail and explores ‘avenues for resolution and the resulting implications’ for both the countries and the region.

The Paper makes some vital policy suggestions:

•A maritime boundary agreement would allow Bangladesh and Myanmar to begin exploiting potential resources, which could help alleviate Bangladesh’s gas crisis and bring more foreign reserves to Myanmar.
•Gas discoveries in Myanmar’s newly delineated maritime territory will likely rouse competition for gas exports between China and India similar to that over gas from the Shwe fields.
•Gas discoveries in the overlapping claims area offer the opportunity for Myanmar to create stronger economic, strategic, and political links with India.
•Development of energy infrastructure in northwestern Myanmar will disproportionately challenge the livelihood of the Rohingya.
•Some scope exists for regional multilateral organizations, especially BIMSTEC, to help engender cooperation in the Bay of Bengal region.
•If settled through the ITLOS, the dispute could provide legal precedent that affects future maritime boundary cases elsewhere.