Saarc Free Trade Agreement

12 avr Saarc Free Trade Agreement

Why is intra-regional trade not growing in South Asia, despite more than a decade of SAFTA, several bilateral free trade agreements and a one-way tariff-free customs regime from India to all the least developed countries in the region (Afghanistan, Bangladesh, Nepal, Maldives and Bhutan)? The Latest World Bank report « A Glass Half Full: The Promise of Regional Trade in South Asia » explains itself. And here are the reasons for the inefficiency of SAFTA. First, the SAFTA is undermined by the so-called « sensitive » list – a long list of products excluded from the tariff liberalisation programme. Each country has many products in this sensitive list, which range from 6 to 45 percent of its imports from other South Asian countries. Bangladesh, Sri Lanka and Nepal account for the highest proportion of sensitive imports from South Asia. Similarly, 5 – 48% of exports to South Asia do not benefit from tariff preferences from recipient countries, with the Maldives, India and Pakistan accounting for the highest proportion of exports subject to this treatment. Bangladesh Chambers of Commerce President Mir Nasir said: « We can solve problems more easily through bilateral discussions. In a bilateral agreement, more products can be removed from the sensitive list and thus increase the list of exports. « Any bilateral free trade agreement should be SAFTA plus if a regional agreement should be the WTO more, » said Professor Mustafizur Rahman, director of research at the Centre for Policy Dialogue (CPD). India has signed free trade agreements with Nepal, Sri Lanka and Thailand.

The country also signed a Comprehensive Economic Cooperation Agreement (ECSC) with Singapore in April 2003 and a draft free trade agreement with BIMSTEC in February 2004. It is now pursuing a free trade agreement with Bangladesh and ASEAN. Pakistan has also signed a free trade agreement with Sri Lanka. The creation of an intergovernmental group (IGG) to develop an agreement to establish a ZATA until 1997 was approved at the sixth ASAC Summit in Colombo in December 1991. The total abolition of tariffs under SAFTA could increase intra-regional trade – currently about $6 billion – by 1.6 times the existing level. Note that you can select to send « » or « » `` emails are free, but can only be sent to your device if it is connected to Wi-Fi. Emails with the can be sent even if you are not connected to Wi-Fi, but note that service charges are incurred. The main objective of the agreement is to promote competition in the region and to offer equitable benefits to the countries concerned. It must benefit the citizens of countries by bringing transparency and integrity between nations. SAFTA was also created to strengthen the level of trade and economic cooperation between ASARC states by reducing tariffs and trade barriers and to grant specific preferences to least developed countries (LDCs) within SAARC, create a framework for further regional cooperation. The SEA called on the government to fill a gap in the South Asian Regional Free Trade Pact that was used to circumvent tariffs through imports of palm oil and soybeans from Nepal and Bangladesh. Although trade pacts create more opportunities in the market, economic analysts believe that it is not possible for Bangladesh to take advantage of them, as it does not yet need to expand its product base.

However, until Bangladesh improves its ability to export more at competitive prices, it will have little room for bilateral or multilateral free trade agreements. 85 Article VIII of the SAARC Charter, online: < Traders use SAFTA to redirect palm oil to India via Bangladesh, Nepal. The Solvent Extractors` Association of India (SEA), the leading vegetable oil trade, called on the government to look for ways to stop the indirect supply of palm and soybean oil from Nepal and Bangl

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