South Asian Free Trade Area and Functions of SAFTA

South Asian Free Trade Area (SAFTA)

Every state or country wants to get economic progress, peace and prosperity.

But it is not possible for every country.

There are lots of developing or under developing countries in the world.

SAFTA provides tariff reduction in imported and exported of goods in member countries.

It acts as administrative management, dispute settlement, safe guard of domestic industries etc.

The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016.

In 7^th SAARC (South Asian Association for Regional Cooperation) Summit on 11^th April 1993 in Dhaka, Bangladesh member countries of SAARC has signed South Asian Preferential Trade Agreement (SAPTA).

In 2004, the member states of the SAARC agreed to establish what invoice is.

SAFTA is an agreement among seven South Asian countries.

They are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

On the basis of population, it is the largest agreement of the world (in 2011, the combined population is 1.8 billion people).

Keep in Mind (KIM)

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Functions of SAFTA

The major functions of SAFTA are as follow:

To promote and enhance mutual trade and economic cooperation.

To eliminate barriers to trade

To provide facilities the cross-border movement of goods.

To promote conditions of fair competition in the free trade area.

To promote technical support to the least developed member countries.

To ensure equitable benefits to all members countries.

To create effective mechanism for the implementation and application of this agreement.

To solve joint administration and resolution of disputes.

To establish a framework for further regional cooperation to expand and enhance the mutual benefits etc.

Keep in Mind (KIM)

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