Safta Trade Agreement

SEA has called on the government to fill a gap in the South Asian regional free trade pact, which has been used to circumvent tariffs through imports of palm oil and soybeans diverted by Nepal and Bangladesh. The main objective of the agreement is to promote competition in this area and to offer fair advantages to the countries concerned. It aims to serve the peoples of countries by bringing transparency and integrity among nations. SAFTA was also established to increase the level of trade and economic cooperation among SAAC countries by reducing tariffs and barriers, as well as to give special preference to least developed countries (LDCs) among SAACs to create a framework for further regional cooperation. The objective of SAFTA is to promote and improve common treaties between countries, such as medium- and long-term contracts. Trade contracts with States, security of supply and import for certain products, etc. This is an agreement on tariff concessions such as domestic tariff concessions and non-tariff concessions The agreement was signed in 2004 and entered into force on 1 January 2006 with the wish of the SAARC member States (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) to promote and maintain economic trade and cooperation within the saarc by exchanging concessions. Considering that a number of regions will enter into such agreements to promote trade through the free movement of goods, the South Asian Free Trade Area (SAFTA) is the free trade agreement of the South Asian Association for Regional Cooperation (SAARC). The agreement entered into force in 2006 and replaced the 1993 SAARC preferential agreement. SaFTA signatories are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Concessions agreed under this Convention may not be reduced or abolished by the application of restrictive measures by the Contracting States, except as provided in this Agreement. The South Asian Free Trade Area (SAFTA) agreement has been in force since 2006, with little success. This is in stark contrast to the ASEAN Free Trade Area (AFTA), which began in 1992 with six countries, then added more members and completed ASEAN-10 until 1999. Between 1992 and 2017, intra-regional imports increased from 17% to 24% in global imports into ASEAN and exports from 21% to 27%. . . .