Free trade agreement-SAFTA

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understanding as to what fta(free trade agreement) is, international business, SAFTA.
understanding of trade relations betwwen saarc countries.

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Free trade agreement-SAFTA

  1. 1. FREE TRADE AGREEMENT
  2. 2. WHAT IS FTA? • FTA- FREE TRADE AGREEMENT • Facilitates tariff free trade between countries. • Agreement which reduces the existing barriers • It involves agreement on tariff concession like national duties concession and non-tariff concession.
  3. 3. S-A-F-T-A • SOUTH-ASIAN-FREE-TRADE-AGREEMENT • It is a FTA between the seven members of the SAARC group. • Includes India, Bangladesh, Bhutan, Maldives, Nepal, Pa kistan and Sri Lanka. • The agreement incorporates trade in goods. • Services and investment are not incorporated.
  4. 4. SAFTA IS SIGNED BETWEEN: INDIA-BANGLADESH-SRILANKA-PAKISTAN- BHUTAN-MALDIVES-NEPAL SAARC COUNTRIES SOUTH ASIAN ASSOCIATION OF REGIONAL COOPERATION
  5. 5. HISTORY • SAFTA is an agreement reached on 6 January 2004 at the 12thSAARC Summit in Islamabad, Pakistan. • The officials signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016. • The SAFTA agreement came into force on 1 January 2006. • In the final five-year phase ending 2012, the 20 percent duty will be reduced to zero in a series of annual cuts.
  6. 6. OBJECTIVES • Trade Liberalization Programme • Non-tariff Barriers • Negative List (sensitive list of items) • Rules of Origin • Safeguard Measures • Institutional Arrangements • Consultations and Dispute Settlement Procedures
  7. 7. BENEFITS TO MEMBER NATIONS • Significant gains for the small economies of the region. • Attracts foreign capital. • Better political relations and peace. • Part of the informal trade diverted to official channels. • Informal trade diversion brings in hefty revenues for the nations. • Elimination of tariffs has increased intra-regional trade by 1.6 times the previous trade. • A unified approach together.
  8. 8. WHAT SAFTA STACKS IN FOR US?
  9. 9. REFERENCES • http://www.financialexpress.com/news/what- is-safta-what-are-its-benefits/159142 • http://en.wikipedia.org/wiki/South_Asian_Free _Trade_Area • http://www.saarc- sec.org/userfiles/saftaagreement.pdf
  10. 10. TEAM: SHWETA CHAURASIYA RAJAT VAID VIPUL AGGARWAL AKSHIT KUMAR CHANCHAL JHA DHEERAJ GUPTA

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