Page 286 - Failure to Triumph - Journey of A Student

SAPTA

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

SAPTA is an umbrella organization under which member states will accord trade

preferences and also liberalize trade among themselves through reducing trade barriers
both tariff and non-tariff. The preferential trade and trade liberalization 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 will 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. Analyst points 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-starter is the strained
relations between India and Pakistan. The effectiveness of this forum to further regional
cooperation has come under serious scrutiny because of the disputes existing between India

and Pakistan.

Pakistan Holding Back Economic Cooperation. Pakistan has been more interested in
bringing its bilateral dispute with India over Kashmir into the SAARC ambit rather than
trade liberalization. Pakistan insists that there can be no economic progress unless political
issues are resolved. This is the opposite of what the other regional organizations have
successfully adopted – expanding economic cooperation despite political differences.
Thus, Pakistan should no longer be allowed to hold back the rest of the region.

Fears of India’s Dominance. India’s size and strength of its economy only served to