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A PRESENTATION
ON
SAFTA
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.
.
Evolution of
Economic
Integration
in South
Asia
SAARC
LIBERALIZATI
ON POLICY
SAPTA
SAFTA
.
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.
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
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
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
• 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

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SAFTA.pptx

  • 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.
  • 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