SAFTA stands for the South Asian Free Trade Area. It is an agreement among the member countries of the South Asian Association for Regional Cooperation (SAARC) to promote and enhance economic cooperation and trade within the region. The member countries of SAFTA include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The main objective of SAFTA is to gradually eliminate tariffs and non-tariff barriers on most goods traded between the member countries. It aims to encourage regional trade, boost economic growth, and enhance the welfare of the people in the South Asian region.

1. A PRESENTATION
ON
SAFTA

2. S A F T A
• It is a FTA between the seven members of the
SAARC group.
• Includes India, Bangladesh, Bhutan, Maldives, Nepal,
Pakistan, Sri Lank and Afghanistan.
• The agreement incorporates trade in goods, services
and investment.

3. .
Evolution of
Economic
Integration
in South
Asia
SAARC
LIBERALIZATI
ON POLICY
SAPTA
SAFTA

4. .
HISTORY
SAFTA is an agreement
reached on 6 January
2004 at the 12thSAARC
Summit in Islamabad,
Pakistan
In the final five-year
phase ending 2012, the
20 percent duty will be
reduced to zero in a
series of annual cuts.
The SAFTA agreement
came into force on 1
January 2006.
The officials signed a
framework agreement
on SAFTA to reduce
customs duties of all
traded goods to zero by
the year 2016.

5. OBJECTIVES
• Trade
Liberalization
Programme
• Negative List
(sensitive list of
items)
• Non-tariff
Barriers
• Rules of Origin
• Safeguard
Measures
• Institutional
Arrangements
• Consultations and
Dispute Settlement
Procedures

6. Limitations for Promoting Trade and
Investment
• The region has diversity in socio-
political and economic conditions
• Political considerations
and geographical
disadvantages for some
countries, which are
responsible for affecting
intra-regional trading
• Informal trade in the
borders of the countries
has been increasing
• Weaker trade links among SAARC
countries
• Intra-regional flow of capital and
technology is very limited

7. Consultation and Dispute
Settlement Procedure
• Any dispute between or
among the contracting states
regarding the application of
provisions will be settled
through bilateral
consultations
• If they fail to
settle such
disputes, COE
looks the matter
following its own
procedures

8. • SAFTA is governed by the
provisions of this agreement and
also by rules, regulations, decisions,
understanding and protocols to be
agreed upon within its framework by
the contracting states.
• The implementation of SAFTA
provide an institutional framework
for the liberalization of mutual
trade in the region
Conclusion