The document discusses the history and objectives of SAARC (South Asian Association for Regional Cooperation). It was established in 1985 by Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka to promote economic and social progress among member countries. The objectives include improving living standards, accelerating economic growth through cooperation, and fostering mutual understanding. Trade among SAARC countries is currently less than 5% of total trade in the region. Efforts are being made to reduce barriers and eventually form a South Asian Economic Union.

2. Member of SAARC

3. Observers
Australia
China
European Union
Japan
Iran
Mauritius
Myanmar
South Korea
United States

4. Introduction:-
The idea of co-operation in South Asia was discussed in at least three
conferences: the Asian Relations Conference held in New Delhi on April
1947.
The Baguio Conference in the Philippines on May 1950; and the Colombo
Powers Conference held in Sri Lanka in April 1954.In the ending years of
the 1970s, the seven inner South Asian nations that included Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon the
creation of a trade bloc and to provide a platform for the people of South
Asia to work together in a spirit of friendship, trust and understanding.
Officially, the union was established in Dhaka with Kathmandu being
union's secretariat-general. The first SAARC summit was held in Dhaka on
7–8 December 1985 and hosted by the President of Bangladesh Hussain
Ershad. The declaration signed by King of Bhutan Jigme Singye, President
of Pakistan Zia-ul-Haq, Prime Minister of India Rajiv Gandhi, King of
Nepal Birendra Shah, President of Sri Lanka JR Jayewardene, and
President of Maldives Maumoon Gayoom.

5. 1.To promote the welfare of the peoples of South Asia and to
improve their quality of life
2.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.
Objectives:-
3.To contribute to mutual trust, understanding and appreciation
of one another’s problems.
4.To strengthen cooperation with other developing countries.
5. To cooperate with international and regional organizations with
similar aims and purposes.

6. Reducing barriers for export to SAARC countries:-
•The Federation of Chambers of Commerce and Industry of Sri Lanka
(FCCISL), the Secretariat dealing with SAARC Chamber of
Commerce and Industry (SCCI), wants to minimize any trade barriers
with other SAARC countries.
•Hildon U. Hamangoda, Director, SAARC and International Affairs,
said that according to compiled data trade among SAARC countries is
less than five percent of the total trade of the region with the rest of the
world. But other regional blocs are showing much bigger volumes of
intra-regional trade. For instance the North America Free Trade
Agreement intra-regional trade is over 50% and ASEAN countries
have over 20% trade among its member countries. The Intra-SAARC
trade is dismally low as compared to other regions. The trade and
economic activity needs to be increased.

7. South Asian Free Trade Area (SAFTA) leading subsequently
towards a Customs Union, Common Market and Economic Union.
In 1995, the Sixteenth session of the Council of Ministers (New
Delhi, 18–19 December 1995) agreed on the need to strive for the
realization of SAFTA and to this end an Inter-Governmental
Expert Group (IGEG) was set up in 1996 to identify the necessary
steps for progressing to a free trade area.
South Asian free trade:-

8. SAARC TRADE :-

10. The major focus-areas of SAARC-TPN are:
1.Promotion of SMEs especially women SMEs through
regional value chains.
2.Improvement in quality infrastructure.
3.Reduction of non-tariff barriers/measures.

11. Saarc and Common Market:-
Saarc countries should accept that there should be no change in
existing boundaries including the line of control in Kashmir. They
must together work for a common market and a future common
currency and total freedom of movement for all citizens for
tourism, business and development, including humanitarian help.
The nuclear weapons of India and Pakistan should be under united
command to be deterrent against external aggression from outside
saarc till universal disarmament is achieved. Besides the good it
would bring to the well being of saarc peoples, it would ensure
the region to be treated as a equal superpower

12. SAARC Trade Promotion:-
The strategic management capacity and specialist competencies of the
SAARC Trade Promotion Network and its member organizations have
improved. Commissioned by the German Federal Ministry for Economic
Cooperation and Development (BMZ), the project is supporting the
SAARC Trade Promotion Network (SAARC-TPN) and its five working
groups (Non-tariff Trade Restrictions; Quality Infrastructure; Business-
to-Business Initiatives; Trade Information Portal; Trade Promotion in
SMEs; Donor Co-ordination) in improving strategic management and
organizational development. The project promotes communication and
information-sharing between network members, as well as competences
for identifying priority measures to overcome trade restrictions,
facilitating complex negotiations to develop solutions, and properly
representing the interests of the network.

13. Regional cooperation
The Heads of State or Government expressed their strong
determination to deepen regional integration for peace, stability
and prosperity in South Asia by intensifying cooperation, inter
alia, in trade, investment, finance, energy, security, infrastructure,
connectivity and culture; and implementing projects, programmes
and activities in a prioritized, result-oriented and time-bound
manner.
South Asian Economic Union (SAEU)
The Leaders renewed their commitment to achieve South Asian
Economic Union (SAEU) in a phased and planned manner
through a Free Trade Area, a Customs Union, a Common
Market, and a Common Economic and Monetary Union.