Page 407 - SSB Interview: The Complete Guide, Second Edition

SAPTA

The SAARC Preferential Trading Agreement (SAPTA) became
operational on 7 December 1995.

SAPTA is an umbrella organisation under which member states accord

trade preferences and also liberalise trade among themselves through

reducing trade barriers both tariff and non-tariff. The preferential trade
and trade liberalisation under SAPTA will be through bilateral

negotiations among member states.

The Least Developed Countries (LDCs) among the SAARC will be

given special treatment. The LDCs include Bangladesh, Bhutan, Nepal
and Maldives.

SAFTA

The establishment of the South Asian Free Trade Area (SAFTA) is the
ultimate aim of SAARC nations.

It was agreed that SAFTA would have to be established by the year

2000 or at least by 2005.

The ultimate aim of SAFTA is to make South Asia a full-fledged trading

bloc with no internal barriers, free movement of goods without any tariff
or non-tariff barriers.

Impediments to SAARC’s Growth

SAARC Summits — Mere Talking Shops: Analysts point out that the
record of SAARC in promoting regional integration has been dismal.

The SAARC Summits have become merely talk shops with little effect

on the lives of the people of the region.

Indo-Pak Tensions: One of the main reasons for SAARC being a non-