SAARC in brief class presentation

1. SAARC
By
Femina Thomas
Indian Maritime University

3. ORIGIN
7-8 DEC
1985
By President of
Bangladesh
Ziaur Rahman
1978
Three Conferences: Asian
Relations Conferences New
Delhi 1947; Baguio
Conference Philippines May
1950;Colombo Powers
Conference April 1954
Other factors: Change in political
leadership in South Asian Countries;
Need for Indian Support; Acute BoP;
Failure of North-South Dialogue;
Identify feasible area of cooperation;
Economic Assistance; Military
Intervention in Afghanistan
1980-1983, four meetings –
Colombo, Kathmandu, Islamabad,
Dhaka, for establishing principles
and identify areas of cooperation.
After which, First South
Asian Foreign Ministers
conference New Delhi,
where IPA (Agricultural,
rural development,
telecommunications,
meteorology, health and
population control) was
launched. Adopted SARC
(South Asian Regional
Cooperation).
After further
meetings, at First
Summit at Dhaka,
established
association to
promote and develop
such cooperation.

4. SOUTH ASIAN ASSOICATION FOR
REGIONAL COOPERATION
(SAARC)
•
The South Asian Association for Regional Cooperation
(SAARC) is an economic and geopolitical organisation of
eight countries that are primarily located in South Asia,
•
The SAARC Secretariat is based in Kathmandu, Nepal.
•
8 Members
•
9 Observers : Australia, China, the European Union, Iran,
Japan, Mauritius, Myanmar, South Korea, US.
•
Secretary General : H.E. Arjun Bahadur Thapa
•
Director representing India at the SAARC Secretariat
: L Savithri

5. MEMBERS
COUNTRY CAPITAL CURRENCY
Bangladesh Dhaka Taka
Bhutan Thimphu Ngultrum Indian
Rupee
India New Delhi Indian Rupee
Maldives Male Rufiyaa
Nepal Kathmandu Nepalese Rupee
Pakistan Islamabad Pakistani Rupee
Sri Lanka Sri
Jayawardenepura
Kotte
Sri Lankan Rupee
Afghanistan Kabul Afghani

6. SAARC
Objectives:
•
To promote the welfare of the peoples of South
Asia and to improve their quality of life;
•
To accelerate economic growth, social progress
and cultural development in the region and to
provide all individuals the opportunity to live in
dignity and to realize their full potential;
•
To promote and strengthen collective self-
reliance among the countries of South Asia;
•
To contribute to mutual trust, understanding and

7. Principles:
•
Cooperation within the framework of the Association is based on respect
for the principles of sovereign equality, territorial integrity, political
independence, non-interference in the internal affairs of other States and
mutual benefit.
•
Such cooperation is to complement and not to substitute bilateral or
multilateral cooperation.
•
Such cooperation should be consistent with bilateral and multilateral
obligations of Member States.

8. INSTITUTIONAL SET- UP
The Charter of the Association provides for the following:

Meetings of the Heads of State or Government

Council of Ministers

Standing Committee

Technical Committees

Action Meetings

9. REGIONAL CENTRES
The SAARC Secretariat is supported by following Regional Centres
established in Member States to promote regional cooperation. These Centres are
managed by Governing Boards comprising representatives from all the Member States,
SAARC Secretary-General and the Ministry of Foreign/External Affairs of the Host
Government.

SAARC Agricultural Centre (SAC), Dhaka

SAARC Meteorological Research Centre (SMRC), Dhaka

SAARC Tuberculosis Centre (STC), Kathmandu

SAARC Documentation Centre (SDC), New Delhi

SAARC Human Resource Development Centre (SHRDC), Islamabad

SAARC Costal Zone Management Centre (SCZMC), Maldives

SAARC Information Centre (SIC), Nepal

SAARC Energy Centre (SEC), Pakistan

SAARC Disaster Management Centre (SDMC), India

SAARC Forestry Centre (SFC), Bhutan

SAARC Cultural Centre (SCC), Sri Lanka

10. SUMMITS
SUMMITS VENUE SUMMITS VENUE
FIRST Dhaka, 1985 TENTH Colombo, 1998
SECOND Bangalore, 1986 ELEVENTH Kathmandu,2002
THIRD Kathmandu,1987 TWELFTH Islamabad, 2004
FOURTH Islamabad, 1988 THIRTEENTH Dhaka, 2005
FIFTH Male, 1990 FOURTEENTH New Delhi, 2007
SIXTH Colombo, 1991 FIFTEENTH Colombo, 2008
SEVENTH Dhaka, 1993 SIXTEENTH Thimpu, 2010
EIGHTH New Delhi, 1995 SEVENTEENTH Addu City, 2011
NINETH Male, 1997 EIGHTEENTH Nepal, 25 Nov
2014

11. APEX AND RECOGNISED BODIES
SAARC Apex Bodies
•
SAARC Chamber of Commerce & Industry (SCCI)
•
SAARCLAW
•
South Asian Federation of Accountants (SAFA)
•
South Asia Foundation (SAF)
•
South Asia Initiative to End Violence Against Children (SAIEVAC)
•
Foundation of SAARC Writers and Literature (FOSWAL)

12. SAARC Recognized Bodies
•
SAARC Federation of University Women (SAARCFUW)
•
Association of Management and Development Institutions in South Asia
(AMDISA)
•
South Asian Association for Regional Cooperation of Architects (SAARCH)
•
Federation of State Insurance Organizations of SAARC Countries (FSIO)
•
SAARC Diploma Engineers Forum (SDEF)
•
Radiological Society of SAARC Countries (RSSC)
•
SAARC Teachers Federation (STF)
•
SAARC Surgical Care Society (SSCS)
•
South Asian Regional Association of Dermatologists, Venereologists and
Leprologists (SARAD)
•
South Asian Free Media Association (SAFMA)
•
SAARC Women’s Association in Sri Lanka (SWA)
•
Hindukush Himalayan Grassroots Women’s Natural Resources Management
(HIMAWANTI)
•
Federation of Association of Pediatric Surgeons of SAARC Countries (FAPSS)
•
South Asian Federation of Exchanges (SAFE)

13. AREAS OF COOPERATION
SAARC has identified areas under IPA:

Agricultural and Rural Development

Biotechnology

Culture

Economic and Trade

Education

Energy

Environment

Finance

Funding Mechanism

Information, Communication and Media

People to People Contacts

Poverty Alleviation

Science and Technology

Security Aspects

Social Development

Tourism

14. TRADE AGREEMENTS

For Regional Trade Agreements (RTA), SAARC signed SAARC
Preferential Trading Arrangement (SAPTA) in April 1993 and its entry
into force in December 1995.

The aim of SAPTA was to pave the way for progressively deeper
integration, with the desire, to promote and sustain mutual trade and
economic cooperation within the SAARC region through the exchange of
concessions.

Later, SAPTA transformed into South Asian Free Trade Agreement
(SAFTA) in January 6, 2004 for deeper integration to promote
competition in trade, enhance productive capacity and the region’s trading
interests to provide equitable benefits to the countries involved.

It also aimed to benefit the people of the country by bringing transparency
and integrity among the nations, in order to increase the level of trade and
economic cooperation among the SAARC nations.

15. SAFTA

SAPTA includes the following contents; least development country,
contracting state, serious injury, threat of serious injury, critical
circumstances, sectorial basis, direct trade measures, tariffs, Para-tariffs,
nontariff, and products.

The contracting states establish the South Asian Preferential Trade
Agreement (SAPTA) for the promotion of mutual trade and economic
collaboration among these countries and it will be governed by the
requirements of SAPTA and also by the legislation mentioned in its structure
by the Contracting States.

The principles for the governance of SAPTA are: the member states shall be
benefited equally.

16. Under SAFTA, the main components were:
•
Concessions
•
Direct Trade Measures
•
Non Tariff Measures
•
Para-Tariff Measures
•
Instruments : Trade Liberalisation Programme (TLP), Rules of Origin,
Institutional Agreements, Consultations, Dispute Settlement Mechanism,
Safeguard Measures, Any other instrument that may be agreed upon.
•
Rule of Origin : The SAFTA Agreement has specific requirements to
ensure that goods exported from member countries are produced, grown or
extracted from the member countries.
•
National treatment: means that imports should be treated no less
favourably than domestically produced goods after they cross the border.
•
Sensitive List : A sensitive list is a list with every country that does not
include tariff concession.
•
Positive List : The voluntary inclusion of a designated number of sectors
in a national schedule indicating what type of access and what type of
treatment for each sector and for each mode of supply a country is
prepared to contractually offer service suppliers from other countries.

17. SAFTA
Least Developing countries
(LDC)
Non- Least Developing
Countries (NLDC)
Afghanistan India
Bangladesh Pakistan
Sri Lanka
Bhutan Maldives
Nepal

18. Modalities of Tariff Reduction Under TLP in
Article-7 of
Agreement Contains:
• No tariff reduction on items in the Sensitive
List
• Non-LDCs (Pakistan, India, Sri Lanka) shall
reduce tariff to 0-5% for LDCs (Bangladesh,
Bhutan, Nepal, Maldives) the
reduction would be within three years (2009)
• Tariff Reduction by Non-LDCs in two phases:
Phase-I(2006-
2008) and phase-II (2008-13) to 0-5%

21. India-Sri Lanka Free Trade Agreement

The India Sri Lanka FTA (ISLFTA) was signed
in 1998 and became operational in March 2000.

Mutual phased tariff concessions on different
products on 6 digit Harmonized Classification
(HS) Code basis have been granted by both the
partners.

Each side is having its negative lists (no
concessions), positive list (immediate full
concessions) and a residual list (phased tariff
reductions) as per the framework of ISLFTA.

The preferential trade under the FTA is governed

22. Pak-Sri Lanka Free Trade Agreement

The Free Trade Agreement (FTA) between Pakistan and Sri
Lanka is operational from June 12, 2005.

Under this agreement, Sri Lanka and Pakistan have agreed to
offer preferential market access to each other’s’ exports by way
of granting tariff concessions.

Sri Lanka would be able to enjoy duty free market access on 206
products in the Pakistani market including tea, rubber and
coconut.

Pakistan, in return, would gain duty free access on 102 products
in the Sri Lankan market. These products include oranges,
basmati rice and engineering goods.

23. Afghanistan Pakistan Transit Trade Agreement
The Afghanistan Pakistan Transit Trade Agreement (APTTA) 2010 was
signed by both countries on October 28, 2010. This agreement has replaced
the Transit Trade Agreement of 1965. The APTTA 2010 was operationalized
on June 12, 2011. The salient objectives of the APTTA include:
• To safeguard the strategic interest of Pakistan,
• To ensure compliance of International Protocols,
• To safeguard the interest of Pakistan’s business fraternity,
• To discourage smuggling,
• To ensure optimum revenue to national exchequer,
• To ensure smooth flow of goods i.e. inconformity with
international practices,
• Pakistan will facilitate Afghan Exports to India unto Wagha Border, in
Afghan Trucks,
• No Indian Exports will be allowed through Wagha, however, feasible
proposal may be considered in future,
• Goods will be allowed to transport in containers, Open trucks (bulk and
oversize cargo), and other transportation units (in the case of perishable goods
e.g. fruits etc.).

24. Other conventions:
•
Agreement on Establishing the SAARC and Security Reserve
•
SAARC Regional Convention on Suppression of Terrorism
•
SAARC Convention on narcotic drugs and psychotropic
substances
•
SAARC Convention on preventing and Combating Trafficking
in Women and Children for Prostitution
•
SAARC Convention on regional arrangements for the
promotion of child welfare in South Asia

25. VARIOUS FUNDS

South Asian Development Fund (SADF)

SAARC Japan Special Fund
Other International Organisations

UNCTAD

UNICEF

ESCAP

UNDP

UNDCP

EC

ITU

CIDA

26. INDIA’S TRADE
COUNTRY 2013-2014 % GROWTH
EXPORT
S
IMPORTS TRADE
BALANCE
EXPORTS IMPORTS
Afghanistan 474 209 265 0.34 30.84
Bangladesh 6051 461 5590 17.61 -27.9
Bhutan 300 151 149 28.79 -7.91
Maldives 108 4 104 -11.98 -36.8
Nepal 3575 528 3047 15.75 -2.71
Pakistan 2275 427 1848 10.18 8.24
Sri Lanka 4549 677 3872 14.19 -8.31

27. Highlights of Trade with SAARC
•
During 2013-14, Bangladesh was the largest trading partner of
India in SAARC region followed by Sri Lanka.
•
During 2013-14, the highest growth for exports was recorded
for Bhutan at 29% followed by Bangladesh at 18%.
•
During 2013-14, India has recorded a negative growth rate of
exports with Maldives (-12%).
•
India runs a trade surplus with all its South Asian trading
partners

28. CHALLENGES
The challenges are:

Too small and too few with similar revealed comparative
advantage

Fear of India

Weak port and transport infrastructure

Persistence of high levels of overall protection

Difficult business environment

Restrictive rules of origin and destination

Lack of coverage and commitment in the merchandise trade
agreements

Services not included in RTA

29. REFERNCES
•
www.saarc.org
•
Ministry of Commerce India (2014)
•
Wikipedia