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BUSINESS
ENVIROMENT
Presented by: Dayanidhi Timalsina
Table of contents
 Introduction
 Objectives
 Principles
 Instrument
 Implication to the Nepalese Business Environment
 Conclusion
Introduction
 The South Asian Free Trade Area ( SAFTA) is a pact signed in 6 January 2004.
 Member countries of SAFTA are Bangladesh, Maldives, Bhutan, Pakistan,
Afghanistan, Nepal, India and Srilanka.
 After the establishment of SAARC in 1985 and SAPTA in 1995, the member
countries recognized the need to progress beyond a preferential trading
arrangement and move towards a higher level of trade and economic
cooperation in the region.
 As a result, the SAARC Council of Ministers signed a framework Agreement on
South Asian Free Trade Area (SAFTA) in January 2004 in Islamabad and came
into practice on 1st Jan. 2006.
Objectives
 Promoting and enhancing mutual trade and economic corporation by
eliminating barriers in the trade.
 Promoting condition of fair trade competition in the free trade area.
 Ensuring equitable benefits to all.
 Establishing a framework for further regional corporation to expand the mutual
benefits of the agreement.
 Creating effective mechanism for the implementation and application of this
agreement, for its joint administration and for the resolution of disputes..
Principles
 Governed by the provision of this agreement
 Existing rights and obligations
 Overall reciprocity
 Free movement of goods
 Adoption of Trade Facilitation and Other Measures
 Recognization of the need of LDCs
Instruments
 Trade liberalization policy
 Rules of origin
 Institutional arrangements
 Consultation and dispute settlement procedures
 Safeguard measures, etc.
Implication to the Nepalese business
environment
 SAFTA bring significant gains for the small economies of the region.
 It will attract foreign capital.
 It will be a step towards better political relationship and peace.
 Part of the informal trade will be diverted to official channels and bring revenue
and other benefits.
 Contribute to geographic export diversification
 Liberalize system may help to increase investment and productivity.
Conclusion
 SAFTA is governed by the provision of this agreement and also by rules,
regulations, decisions, understanding and protocols to be agreed upon within its
framework by the contracting stated.
 The implementation of SAFTA provides an institutional framework for the
liberalization of the mutual trade in the foreign.
Business environment

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Business environment

  • 2. Table of contents  Introduction  Objectives  Principles  Instrument  Implication to the Nepalese Business Environment  Conclusion
  • 3. Introduction  The South Asian Free Trade Area ( SAFTA) is a pact signed in 6 January 2004.  Member countries of SAFTA are Bangladesh, Maldives, Bhutan, Pakistan, Afghanistan, Nepal, India and Srilanka.  After the establishment of SAARC in 1985 and SAPTA in 1995, the member countries recognized the need to progress beyond a preferential trading arrangement and move towards a higher level of trade and economic cooperation in the region.  As a result, the SAARC Council of Ministers signed a framework Agreement on South Asian Free Trade Area (SAFTA) in January 2004 in Islamabad and came into practice on 1st Jan. 2006.
  • 4. Objectives  Promoting and enhancing mutual trade and economic corporation by eliminating barriers in the trade.  Promoting condition of fair trade competition in the free trade area.  Ensuring equitable benefits to all.  Establishing a framework for further regional corporation to expand the mutual benefits of the agreement.  Creating effective mechanism for the implementation and application of this agreement, for its joint administration and for the resolution of disputes..
  • 5. Principles  Governed by the provision of this agreement  Existing rights and obligations  Overall reciprocity  Free movement of goods  Adoption of Trade Facilitation and Other Measures  Recognization of the need of LDCs
  • 6. Instruments  Trade liberalization policy  Rules of origin  Institutional arrangements  Consultation and dispute settlement procedures  Safeguard measures, etc.
  • 7. Implication to the Nepalese business environment  SAFTA bring significant gains for the small economies of the region.  It will attract foreign capital.  It will be a step towards better political relationship and peace.  Part of the informal trade will be diverted to official channels and bring revenue and other benefits.  Contribute to geographic export diversification  Liberalize system may help to increase investment and productivity.
  • 8. Conclusion  SAFTA is governed by the provision of this agreement and also by rules, regulations, decisions, understanding and protocols to be agreed upon within its framework by the contracting stated.  The implementation of SAFTA provides an institutional framework for the liberalization of the mutual trade in the foreign.