In addition, there are freight insurance issues, as any vehicle circulating on the territory of another country should have a comprehensive insurance policy. At present, such a policy of one country is not recognized by the contracting parties to the agreement in another country. Ratification of the agreement was blocked in Bhutan`s upper house in 2017, which is why they postponed the decision to the 2018 parliamentary elections. Since January 2018, Bangladesh, India and Nepal have allowed operating procedures for the transport of passenger cars under the agreement. The three countries also agreed to conduct further truck trials as part of the agreement. Cargo vehicle tests have previously been carried out on the Kolkata-Dhaka-Agartala and Delhi-Kolkata-Dhaka routes. What is it? The pioneering MVA was signed on 15 June 2015 by the transport ministers of the BBIN countries in Thimphu, Bhutan. Under the agreement, Member States would allow vehicles registered in other countries to enter their territory under certain conditions. Tariffs and tariffs are set by the countries concerned and finalized in bilateral and trilateral forums. The agreement will enter into force after being ratified by the four Member States. The agreement has been ratified by Bangladesh, India and Nepal. The lower house of Bhutan`s parliament approved the deal in early 2016, but was rejected by the upper house in November 2016.  Bhutan 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, given that the Bhutanese government was unable to ratify the agreement in the House of Lords due to objections from opposition parties.  Opponents of the measure in Bhutan claimed that the agreement would increase traffic from other countries, which would affect Bhutanese truck drivers and also cause environmental damage. An existing bilateral agreement between Bhutan and India already allows for smooth vehicle traffic between the two countries. Therefore, Bhutan`s decision not to ratify the BBIN MVA would only affect its trade with Nepal and Bangladesh. The Bhutanese government invited other BBIN members to continue the agreement and also said it would try to ratify the VPA after the country held parliamentary elections in 2018. Due to tense relations between Bhutan and Nepal, the government led by Tshering Tobgay feared that the allowing of Nepalese trucks to enter Bhutan would upset the electorate.  India called Bhutan`s decision a “setback” and not a “rejection” of the agreement and said it was natural that not all members could act at the same pace and that India would continue its engagement with Bhutan on this issue.   India proposed a SAARC agreement on motor vehicles at the 18th SAARC Summit that took place in Kathmandu in November 2014.
No agreement could be reached following objections from Pakistan. Instead, India has a similar motor vehicle agreement with BBIN. The BBIN Motor Vehicles Agreement (MVA) was signed on 15 June 2015 at the BBIN Transport Ministers` Meeting in Thimpu, Bhutan.   The Agreement will allow Member States to transport their vehicles on the territory of the other Member State for the carriage of goods and passengers, including transport to third countries and passenger vehicles. . . .