Economics Trade Agreements Questions Medium
The South Asian Free Trade Area (SAFTA) is a regional trade agreement among the member countries of the South Asian Association for Regional Cooperation (SAARC). It was established in 2006 with the aim of promoting and enhancing economic cooperation and trade among the South Asian nations.
SAFTA aims to gradually eliminate tariffs and non-tariff barriers on trade in goods among its member countries, which include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The agreement provides a framework for the negotiation and implementation of trade liberalization measures, including the reduction of customs duties, the removal of quantitative restrictions, and the establishment of a dispute settlement mechanism.
Under SAFTA, member countries have agreed to grant preferential treatment to each other's products by reducing or eliminating tariffs on a wide range of goods. The agreement also includes provisions for the protection of intellectual property rights, the promotion of investment, and the facilitation of trade through measures such as customs cooperation and the simplification of trade procedures.
SAFTA has the potential to significantly boost intra-regional trade and economic integration among South Asian countries. However, the full realization of its benefits has been hindered by various challenges, including political tensions, non-tariff barriers, and inadequate infrastructure. Efforts are ongoing to address these issues and further enhance trade cooperation within the region.