Trade Agreements of SAARC: An Overview
The South Asian Association for Regional Cooperation (SAARC) is a regional intergovernmental organization that consists of eight member states- Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The main objective of SAARC is to promote economic cooperation and regional integration among the member states.
One of the key areas of focus for SAARC has been the promotion of trade among its member states. Several trade agreements have been signed over the years to facilitate better economic cooperation and integration among the member states. In this article, we will take a look at some of the important trade agreements of SAARC.
South Asian Free Trade Area (SAFTA)
SAFTA is a trade agreement signed among the SAARC member states in 2004. Under this agreement, the member states agreed to gradually reduce trade tariffs and other trade barriers among themselves. The aim of SAFTA is to promote intra-regional trade and boost economic growth in the region.
The implementation of SAFTA has been slow, and there have been a lot of challenges in its implementation. However, some progress has been made over the years. In 2019, SAARC trade ministers agreed to reduce tariffs on 5,000 products traded within the region.
South Asia Subregional Economic Cooperation (SASEC)
SASEC is a program initiated by the Asian Development Bank (ADB) to promote economic cooperation and development in the South Asia region. It consists of four SAARC member countries- Bangladesh, Bhutan, India, and Nepal.
Under SASEC, the member states have signed several trade agreements to facilitate trade and investment among themselves. Some of the important agreements include the South Asia Tourism Infrastructure Development Project, the SASEC Trade Facilitation Program, and the SASEC Power System Expansion Project.
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
BIMSTEC is a regional organization comprising seven member states- Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. The aim of BIMSTEC is to promote economic cooperation and integration among the member states.
Under BIMSTEC, several trade agreements have been signed among the member states. The most important of these is the Framework Agreement on the BIMSTEC Free Trade Area. This agreement aims to reduce trade barriers and promote trade among the member states.
Conclusion
Trade cooperation and integration among the SAARC member states are essential for the economic development of the region. The trade agreements signed by SAARC aim to promote intra-regional trade and investment, reduce trade barriers, and boost economic growth in the region. However, the implementation of these agreements has been slow, and a lot needs to be done to realize their full potential. As the region faces economic challenges, it is essential that the member states work together to promote economic cooperation and integration.
