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BIMSTEC FTA

The Bay of Bengal Initiative for Multi - Spectral Technical and Economic Cooperation (BIMSTEC) is an international organization
involving a group of countries in South Asia and South East Asia. These are: Bangladesh , India, Myanmar, Sri lanka ,Thailand
, Bhutan and Nepal.

On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BIST-EC (Bangladesh, India, Sri Lanka,
and Thailand Economic Cooperation). Myanmar attended the inaugural June Meeting as an observer and joined the organization as
a full member at a Special Ministerial Meeting held in Bangkok on 22 December 1997, upon which the name of the grouping was
changed to BIMST-EC. Nepal was granted observer status by the second Ministerial Meeting in Dhaka in December 1998.
Subsequently, full membership has been granted to Nepal and Bhutan in 2003.
In the first Summit on 31 July 2004, leaders of the group agreed that the name of the grouping should be known as BIMSTEC or the
Bay of Bengal Initiative for Multi-Spectral Technical and Economic Cooperation.
BIMATEC Headquarters is situated in Dhaka, Bangladesh and opened by Bangladeshi Prime Minister Sheikh Hasina (13
September 2014)
The main objective of BIMSTEC is technological and economic cooperation among south Asian and south east Asian countries
along the coast of the bay of Bengal . Commerce, investment, technology, tourism, human resource development, agriculture,
fisheries, transport and communication, textiles, leather etc. have been included in it .
Members of the Trade Negotiating Committee of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
(BIMSTEC), a regional bloc of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, are going to meet in Bangkok
between 7-9, September 2015, for working on a functional Free Trade Agreement (FTA) among member countries. BIMSTEC's free
trade agenda is nothing new; a framework agreement for FTA was signed way back in 2004 but nothing concrete is yet to happen.
And perhaps the inertia is for good reasons and with positive effects.

BIMSTEC Priority sectors:-


BIMSTEC has Fourteen priority sectors cover all areas of cooperation. Six priority
sectors of cooperation were identified at the 2nd Ministerial Meeting in Dhaka on 19 November 1998. They include the following:

Trade and Investment, led by Bangladesh


Transport and Communication, led by India
Energy, led by Myanmar
Tourism, led by India
Technology, led by Sri Lanka
Fisheries, led by Thailand
After the 8th Ministerial Meeting in Dhaka on 1819 December 2005, a number of new areas of cooperation emerged. The number
of priority sectors of cooperation increased from 6 to 14. The 7 new sectors were discussed in the 1st BIMSTEC Summit and there
has been various activities to enhance those co-operations ever since. The sectors are as follows,

Agriculture, led by Myanmar


Public Health, led by Thailand
Poverty Alleviation, led by Nepal
Counter-Terrorism and Transnational Crime, led by India
Environment and Natural Disaster Management, led by India
Culture, led by Bhutan
People to People contact, led by Thailand
Climate change, led by Bangladesh

NEW DELHI, JULY 22:-


The free trade agreement being negotiated by the seven-nation BIMSTEC Bangladesh, India,
Myanmar, Sri Lanka, Thailand, Bhutan and Nepal will help in elimination of non-tariff measures and give a big push to trade in the
region, a recent study by an industry body has highlighted.

BIMSTEC FTA may help activate production links among member countries and help in rationalizing various non-tariff measures
which would give a big push to regional trade and generate regional value chains. India should work closely with all members for its
conclusion, a study by Assocham on the opportunities and challenges of economic integration of BIMSTEC said.

Other recommendations to boost economic engagement include elimination of non-tariff barriers within a mutually agreed
timeframe, reduction in negative list (prohibited imports) to unlock trade potential, introduction of transit facilities to promote effective
intra-BIMSTEC trade, improvement in regional connectivity and introduction of a BIMSTEC visa to facilitate movement of people
particularly for investors and businessmen.

India must work closely with BIMSTEC on trade push: Assocham:-


India should work closely with BIMSTEC, a seven-nation grouping, to conclude trade negotiations and attempt early operationalising
of the Bay of Bengal free trade agreement (FTA) to give a big push to trade in the region, industry body Assocham said today.

BIMSTEC FTA may help activate production links among member countries and help in rationalizing various non-tariff measures
(NTMs) which would give big push to regional trade and generate regional value chains, the Assocham study titled BIMSTEC
Economic Integration: Opportunities and Challenges said.

The study was jointly released by Secretary (East) in External Affairs Ministry Preeti Saran, and Bangladesh State Minister for
Foreign Affairs Shahriar Alam at the 7th Assocham-BIMSTEC Business Forum.

The FTA, which has been under negotiations since the inception of BIMSTEC, needs to be accomplished and all other areas of
cooperation will follow once the member countries are connected and trade and commerce flourishes, the study noted.

It further said that there is a need to liberalize trade and investment measures in services considering the lack of adequate physical
infrastructure in the region, more so as services exports are performing well compared to manufactured exports that are more
dependent on infrastructure.

Members of BIMSTEC have been struggling to negotiate a successful free trade agreement which has over the years been
overtaken by other instruments which has been somehow disincentive for a greater push on this FTA, the Assocham said quoting
Saran.

I think the potential for the future lies in investments in the services sector, she added.

Highlighting that the Bay of Bengal is home to over 30 per cent of worlds fishermen, Saran said that sustainable development and
modernization of fishing industry in the region can contribute substantially in improving standards of living of people.

I would urge to look at potential of development of marine resources in agriculture, particularly in the fisheries sector, she said.

Terming terrorism as a major challenge to regions economic growth and development, the Secretary (East) in MEA said, What we
together as BIMSTEC need is a concerted action to deal with terrorism including dismantling of structures of terrorism, trainers of
terrorism and isolate those who sponsor, finance and train these terrorists.

Bangladesh State Minister of Foreign Affairs Alam said, We would also like to see negotiation on investment in services be fast-
tracked to run parallel to the negotiations on trade in goods.

BIMSTECH Summit:-

BIMSTECH Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation Countries
(7) : Bangladesh India Myanmar Sri Lanka Thailand Bhutan Nepal
3rd BIMSTECH Summit 2014 : Nay Pyi Taw (Myanmar)
4th BIMSTEC Summit will be held in Nepal

Brief on BIMSTEC :-

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) comprising
Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand brings together 1.5 billion people 21% of the world population,
and a combined GDP of over US$ 2.5 trillion.

EVOLUTION OF BIMSTEC:-

2. BIST-EC (Bangladesh, India, Sri Lanka, Thailand - Economic Cooperation) was formed at a meeting in Jun 1997 in Bangkok.
Myanmar was admitted in Dec 1997 and the organization was renamed as BIMST-EC. The grouping expanded when Nepal and
Bhutan were admitted in Feb 2004. The groupings name was changed to BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation) at 1st Summit Meeting held in Bangkok in Jul 2004.

FUNCTIONING OF BIMSTEC :-

3. BIMSTEC organizes inter-governmental interactions through Summits, Ministerial Meetings, Senior Officials Meetings and Expert
Group Meetings and through BIMSTEC Working Group (BWG) based in Bangkok. There have been two BIMSTEC Summit
meetings (Bangkok Jul 2004, New Delhi Nov 2008), and 13 Foreign Ministerial meetings (13th MM held in Nay Pyi Taw in Jan 2011)
and 15 SOMs so far. Myanmar is hosting the 3rd BIMSTEC Summit, 14th Ministerial Meeting, 16th SOM and 2nd Preparatory
meetings from 1-4 March, 2014 in Nay Pyi Taw. BIMSTEC Chairmanship rotates among member countries (alphabetically).
Myanmar is Chair of the Group since Dec 2009 and took over from previous chair India (Aug 2006-Dec 2009). Nepal has agreed to
Chair after 3rd Summit.

BIMSTEC Permanent Secretariat :-

4. The BIMSTEC Permanent Secretariat is to be established in Dhaka with first SG to be nominated by Sri Lanka. India would be
contributing 32% of the cost of Secretariat reflecting its strong commitment to BIMSTEC process.
AREAS OF COOPERATION:-

5. BIMSTEC has identified 14 priority areas where a member country takes lead. India is lead country for Transport &
Communication, Tourism, Environment & Disaster Management and Counter Terrorism & Transnational Crime.

Transport and Communications (India) :-

6. BIMSTEC Transport Infrastructure and Logistics Study (BTILS) conducted by ADB in 2007 was endorsed in 12th Ministerial
Meeting (Dec 2009). The Report was finalised in Dec 2013. ADB organised Inception Workshop on BTILS updating and 1st meeting
of Expert Group on Road Development in Yangon in Jun 2013.

Tourism (India):-

7. A BIMSTEC Information Centre has been established in Jul 2007 in New Delhi. Ministry of Tourism organized a meeting on
BIMSTEC Information Centre and contribution to Tourism Fund (1st JWG on Tourism) in Sep 2013 in New Delhi. 1st Round Table
and Workshop of Tourism Ministers was held in Kolkata in Feb 2005; Nepal held 2nd Meeting in Kathmandu in Aug 2006;
Bangladesh will host next meeting.

Counter-Terrorism and Transnational Crime (CTTC) :-

8. BIMSTEC cooperation under CTTC has been divided into 4 sub-groups with lead shepherds - Intelligence Sharing (Sri Lanka);
Combating Financing of Terrorism (Thailand), Legal and Law Enforcement Issues (India) and Prevention of Illicit Trafficking in
Narcotics Drugs, Psychotropic Substances and Precursors (Myanmar).

9. L&T Division of MEA hosted 5th Sub-group on Legal & Law enforcement issues in Jan 2013 in New Delhi where draft
Convention on Mutual Legal Assistance in Criminal Matters was finalized. Members signed BIMSTEC Convention on Combating
International Terrorism, Transnational Organized Crime and Illicit Drug Trafficking in Dec 2009; India has ratified it.

Environment and Disaster Management:-

10. Ministry of Earth Sciences in association with MEA conducted a Workshop on Seasonal Prediction and Application to Society
in June 2011. India is establishing BIMSTEC Weather and Climate Centre at National Weather Forecasting Centre at NOIDA. The
MOA for establishment of the Centre was finalized at 10th Ministerial meeting in New Delhi in Aug 2008 and is expected to be
signed during 3rd Summit.

Trade & Investment (Bangladesh):-

11. A Framework Agreement for BIMSTEC Free Trade Area was signed in Phuket, Thailand in Feb 2004. The Framework
Agreement commits the parties to negotiate FTAs in goods, services and investments. An agreement on Trade in Goods and other
provisions relating to Rules of Origin, Operational Certification Procedures and agreement on Customs Cooperation was finalized in
Jun 2009 at 18th Trade Negotiating Committee (TNC) meeting in Phuket. 19th TNC was held in Bangkok in Feb 2011.India has
exchanged its tariff preference schedules with member countries.

12. The 6th meeting of BIMSTEC Business and Economic Forum were held in Feb 2011 in Bangkok. India hosted a Business
Summit meeting in Nov 2008 in association with CII, FICCI, and ASSOCHAM. India hosts an annual Integrating BIMSTEC Seminar
held in the North East (Shillong 2013, Imphal 2014). To facilitate business travel among BIMSTEC member countries, three
meetings of the Expert Group have been held on BIMSTEC Visa Scheme.

Cultural Cooperation (Bhutan) :-

13. Members are expected to sign MoU on establishment of BIMSTEC Cultural Industries Commission (BCIC) and BIMSTEC
Cultural Industries Observatory (BCIO), Bhutan during 3rd Summit. India hosted the 1st Expert Group Meeting BCIC&O in 2006 in
New Delhi. The first BIMSTEC Ministerial meeting on Culture was held in Paro, Bhutan in May 2006.

Energy (Myanmar) :-

14. Thailand hosted BIMSTEC Regional Workshop and Study Visit on Bio-Fuels Production and Utilization in Jun 2012 in Bangkok.
Ministry of Power hosted 4thmeeting of Task Force on Power Exchange in Jan 2013 in New Delhi which discussed the draft text of
MOU on Grid Interconnection. Meeting of Energy Ministers took place in Oct 2005 in New Delhi and in March 4- 5, 2010 in Bangkok,
Thailand.

15. India also hosted Task Force Meeting in Feb 2011 in Bangalore and SOM in Feb 2011 in New Delhi on operationalisation of
BIMSTEC Energy Centre (MOA signed during 13th MM). A land for the Centre has been allocated in premises of Central Power
Research Institute, Bangalore.

Agriculture (Myanmar) :-

16. Sri Lanka hosted the 3rd meeting on Agriculture in Kandy in Nov 2010. Earlier, at the 2nd Expert Group Meeting held in New
Delhi in Apr 2008, nine priority areas (along with lead countries), were finalized; India will lead in Prevention and control of
transboundary animal diseases (India); Affiliation of Universities/Research Institutions (India); Development of agricultural
biotechnology including bio-safety (India); Development of Seeds (India).

Poverty Alleviation (Nepal) :-

17. Nepal hosted the 2nd Ministerial Meeting in Jan 2012 in Kathmandu where Plan of Poverty Alleviation was adopted.

Technology (Sri Lanka) :-

18. Sri Lanka hosted the 3rd meeting on May 9-10, 2011 in Colombo on establishment of BIMSTEC Technology Transfer Exchange
Facility. The meeting discussed the draft Concept Paper.

Fisheries (Thailand):-

19. Thailand organized a training programme on Advance Aquatic Plants Tissue Culture in Aug 2013 in Bangkok.

Public Health (Thailand) :-

20. Deptt. Of AYUSH in association with MEA hosted two Workshops on IPR issues and Regulatory issues in Traditional Medicines
in October 2011 in New Delhi. Since 2005, India has granted 30 slots of AYUSH scholarships to study in India in the fields of
traditional medicine in undergraduate, post-graduate and doctorate programs.

21. Thailand hosted 2nd meeting of Network of National centers of Coordination in Traditional Medicine in Aug 2010 in Nonthaburi;
Institute of PG Teaching and Research in Ayurveda (IPGTRA), Jamnagar is the Indian nominee.

People-to-People Contact (Thailand):-

23. At India offers 1440 (Civilian), 274 (Defence) and 18 slots in NDC & DSSC under ITEC programme to BIMSTEC countries and
the utilization is almost 1200. India has set up BIMSTEC Network of Think Tanks with RIS as nodal agency. RIS hosted a meeting
of think tanks on 12-13 Feb, 2010.

Climate Change (Bangladesh) :-

24. Bangladesh will be circulating a concept paper on cooperation in this area soon

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade
Agreement (FTA) negotiations (as of July, 2014)

1. The initiative to establish Bangladesh-India-Sri Lanka-Thailand Economic Cooperation (BIST-EC) was taken by Thailand in
1994 to explore economic cooperation on a sub regional basis involving contiguous countries of South East & South Asia grouped
around the Bay of Bengal. Myanmar was admitted in December, 1997 and the initiative was renamed as BIMST-EC. The initiative
involves 5 member of SAARC (India, Bangladesh Bhutan, Nepal & Sri Lanka) and 2 members of ASEAN (Thailand, Myanmar).
BIMST-EC is visualized as a bridging link between two major regional groupings i.e. ASEAN and SAARC. BIMST-EC is an
important element in Indias Look East strategy and adds a new dimension to Indias economic cooperation with South East Asian
countries. A free Trade Agreement among the member states of BIMSTEC is being negotiated.

2. The 2nd BIMSTEC Summit was hosted by India in New Delhi on 13 November 2008. It was preceded by the 11th Ministerial
Meeting and the 13th Senior Officials Meeting on 11-12 November 2008. The 2nd Summit took place four years after the 1st
BIMSTEC Summit which was held in Thailand.

3. The Summit was attended by the Chief Adviser of the People's Republic of Bangladesh, H.E. Fakhruddin Ahmed, the Prime
Minister of the Kingdom of Bhutan, H.E. Jigmi Y Thinley, the Prime Minister of the Republic of India, H.E. Dr. Manmohan Singh, the
Prime Minister of the Union of Myanmar, H.E. Thein Sein, the Prime Minister of the Republic of Nepal, H.E. Pushpa Kamal Dahal
'Prachanda', the President of the Democratic Socialist Republic of Sri Lanka, H.E. Mahinda Rajapaksa and the Prime Minister of the
Kingdom of Thailand, H.E. Somchai Wongsawat.

4. At the conclusion of the 2nd Summit, the leaders expressed satisfaction at the progress that has been made in the
negotiations for a FTA in trade in goods and called for its early conclusion. The leaders welcomed the establishment of the Centre
for Energy and the Centre for Weather and Climate in India and the BIMSTEC Cultural Observatory in Bhutan. They also expressed
concern at the threat posed by terrorism to the region and expressed satisfaction at the finalization of the BIMSTEC Convention on
Combating International Terrorism, Transnational Organized Crime and Illicit Drug Trafficking.

5. The BIMSTEC Trade Negotiating Committee (TNC) has held 19 sessions of negotiations. The negotiations are spread over the
areas of (i) tariff concessions on trade in goods, (ii) customs cooperation, (iii) services and (iv) investments.

6. The 3rd BIMSTEC summit was held from 1 4 March, 2014 in Nay Pyi Taw, Myanmar. In the Summit Declaration, the Leaders
directed the BIMSTEC Trade Negotiating Committee (TNC) to expedite its work for the conclusion of the Agreement on Trade in
Goods by the end of 2014, and to continue its efforts for early finalization of the Agreement on Services and Investments.
If we look at the preferential trade agreements already in force between and among these countries, we would probably
have a clear sense as to why the proposed FTA has not materialized for over a decade. Five of these seven countries
(excluding Myanmar and Thailand) are already parties to preferential trade agreements under the auspices of the South
Asian Association for Regional Cooperation (SAARC). Thailand and Myanmar are already part of the preferential market
access regime of the Association of Southeast Asian Nations (ASEAN).

India, the largest economy of this group of seven countries, also has a preferential trade agreement with members of the
Association of South East Asian Nations (ASEAN) and its manufacturers already enjoy preferential market access in
Myanmar and Thailand. Since preferential trade agreements mean reciprocal market entry benefits, manufacturers from
Myanmar and Thailand enjoy market access benefits in India too. Aside from preferential trade agreements under
SAARC, it also has bilateral preferential trade agreements with Bhutan, Nepal, and Sri Lanka. Thus, while BIMSTEC may
have something to offer on other fronts, it is not clear how much it can deliver on the trade front.

For this reason, the rules of origin increase complexities for manufacturers as well as for customs officials. Manufacturers
willing to enjoy preferential market access would have to strategies how to source inputs for their products so that their
finished products qualify under the rules of origin. The process can be so complex that sometimes reportedly the
manufacturers simply pay the normal tariff rate applicable to imports from all countries and forego the preferential tariff,
which they could have enjoyed if they bothered to comply with the formalities under the rules of origin of the FTA.
Customs officials in a similar vein would have to assess whether goods imported from an FTA partner country qualifies
under the rules of origin of the respective preferential trade agreement. This task can be quite tedious and resource
consuming.

A BIMSTEC FTA would surely be an achievement for members of the Trade Negotiating Committee, as they would have
an achievement in their portfolio. But there is serious doubt, if concluded, how much trade - let alone truly net-welfare
enhancing trade - would take place under that FTA. Thus, for really delivering on the trade front, instead of concluding a
BIMSTEC FTA, BIMSTEC member countries may do well to work for strengthening the existing FTAs within the SAARC
and ASEAN regime (this is particularly important for SAARC member countries as compared to the ASEAN, as progress
in the SAARC is quite lackluster). Or perhaps, they could work for a greater trade bloc involving all members of SAARC
and ASEAN and create a much bigger market. In current geopolitics, the latter idea may be unthinkable, but the
unthinkable may not remain so forever.

SAFTA

The South Asia Free Trade Agreement (SAFTA) was agreed to among the seven South Asia countries that form the South Asian
Association for Regional Cooperation (SAARC): Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka

South Asian Free Trade Agreement

Singed at the 12th SAARC summit, at Islamabad

It came into force on January 1st 2006 replacing the SAPTA which was in operation till 1995

SAFTA presupposes abolition of all kind of trade and tariff restrictions. Ultimately it will pave for the creation of commom
market with common currency

SAFTA came into effect on 1 January 2006, with the aim of reducing tariffs for intraregional trade among the seven SAARC
members. Pakistan and India are to complete implementation by 2012, Sri Lanka by 2013 and Bangladesh, Bhutan, Maldives and
Nepal by 2015.

SAFTA replaces the earlier South Asia Preferential Trade Agreement (SAPTA) and may eventually lead to a full-fledged South Asia
Economic Union. The road to implementation, however, is plagued by the overarching conflict between India and Pakistan.

The finance ministers of South Asian Association for Regional Cooperation (SAARC) have called for strengthening the regional
trade through expeditious implementation of the recent South Asian Free Trade Agreement (SAFTA). According to Khaleej Times,
eight finance ministers from South Asia, who recently met in Islamabad, pushed for the fast-track formation of the South Asian
Economic Union (SAEU) to ensure larger investment inflows, higher trade volumes and energy generation.

According to the report, the decision was taken at a conference of finance ministers of the SAARC including Afghanistan,
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

The ministers urged leaders in the SAARC region to accelerate the process of formation of the SAEU in a phased and planned
manner, as decided in the Declaration of the 18th SAARC Summit, it said.

Finance Minister Ishaq Dar and his counterparts agreed that the decision to form the SAEU should move speedily at the 19th
SAARC Summit, which is scheduled to be hosted by Prime Minister Nawaz Sharif on November 9-10 this year at Islamabad. The
SAARC finance ministers decided for further strengthening of regional trade through expeditious implementation of the South Asian
Free Trade Agreement (SAFTA) in order to achieve deeper integration. The aim is to bring down tariffs, eliminate non-tariff and
preferential trade barriers and reduce sensitive lists for enhanced intra-regional trade under SAFTA. Another key decision was to
operationalised the SAARC agreement on trade in services by finalizing the schedules of specific commitments, it said.

The commerce ministers will discuss on enhancing intra-SAARC trade flows under SAFTA and vision for further trade liberalisation
by reducing non-tariff and Para-tariff barriers, reduction of sensitive lists and implementation of SAARC Agreement on Trade in
Services (SATIS). Finalization and endorsement of SAARC Agreement on Promotion and Protection of Investments and Motor
Vehicles and Railways Agreements are also on agenda for this meeting. There is also an agenda for implementation of a common
South Asian regional standard and establishment of SAARC CEO Forum.
Though SAFTA has envisaged moving towards South Asian Economic Union in the longer term, the bleak status of current intra-
regional trade and investment relation are not encouraging and it may be difficult to achieve this target. The intra-regional trade of
South Asia stands at just five per cent on the share of intra-regional trade in overall trade in South Asia. Similarly, foreign direct
investment is also dismal. The intra-regional FDI flow stands at around four per cent of the total foreign investment.

Over 50 per cent of intra-regional imports are on the sensitive list shielded from tariff cuts. The issue of reducing sensitive list has
always been a burning issue during SAFTA ministerial council meetings but progress on this front has been very slow. It is reported
that more than 85 per cent of non-tariff barriers in South Asia are accounted for by technical barriers and sanitary measures.

Sitharaman bats for early implementation of SAFTA Under this pact, India allows duty free access to goods from least developed
countries

BS Reporter | New Delhi :-30 September 2015

Commerce and industry minister Nirmala Sitharaman made a strong pitch for greater integration of the South Asian region, even as
she underscored the need for speedy implementation of the South Asian Free Trade Agreement (SAFTA) agreement. Safta was
signed by the South Asian Association of Regional Cooperation (SAARC) countries in January 2004, in Islamabad. Under this pact,
India allows duty-free access to goods from Sri Lanka, Nepal, Bhutan and Bangladesh. And, has reduced the sensitive list it
maintains for these countries to 25 items.

The process could have been faster to have a phased tariff liberalization under SaftaHowever, four of the Saarc countries have
now decided to eliminate tariff on all lines by 2020. India is willing to take asymmetric responsibility towards this goal, she said at an
economic conclave for the region, held here by the Confederation of Indian Industry.

The minister said South Asia was the least economically integrated region of the world. Intra-regional trade in goods and services
was only $28 billion.

According to the World Bank, this can rise to $100 bn by 2020, annual growth of 30 per cent compared to the present five per cent.
Sitharaman said the South Asian region had failed to integrate mainly for historical reasons. She stressed on the incidents of
partition that made countries in this region sceptical of trade or investment in each other.

Earlier during the day, Chief Economic Adviser Arvind Subramanian also addressed the conference where he stressed that Indias
neighboring countries had looked at other countries for trade and not depended on India. As a result he said, SAFTA was unable to
offer benefits that North American Free Trade Agreement (NAFTA) offered.

Article 130 of the same section has made a provision on measures to avoid or eliminate delays or other difficulties of a technical
nature in traffic in transit. Clause 1 of the article says the transit states shall take all appropriate measures to avoid delays or other
difficulties of a technical nature in traffic in transit. Should such delays or difficulties occur, the competent authorities of the transit
States and land-locked States concerned shall cooperate towards their expeditious elimination, the clause 2 of the same article
states.

Article 130 of the same section has made a provision on measures to avoid or eliminate delays or other difficulties of a technical
nature in traffic in transit.

Clause:- 1 of the article says the transit states shall take all appropriate measures to avoid delays or other difficulties of a technical
nature in traffic in transit. Should such delays or difficulties occur, the competent authorities of the transit States and land-locked
States concerned shall cooperate towards their expeditious elimination,

the clause 2 of the same article states. Similarly, Safta has also made a provision of providing transit facilities for efficient intra Saarc
trade, especially for the land-locked contracting states. However, India has been blocking Nepal-bound cargos on the pretext that
Indian transporters delivering the goods could be at risk if they were allowed to go to Nepal, although the Nepal government has
assured security.

Trade expert Posh Raj Pandey termed the Indian action is against the WTO rules which has provisioned that the country of transit
should provide route to the land-locked country. There are certain rules even to ban exports. Only when domestic markets are
disturbed greatly due to the exports and domestic industries dont get enough raw materials, exports can be banned which must be
done globally not for a specific country, he said.

Trade expert Posh Raj Pandey termed the Indian action is against the WTO rules which has provisioned that the country of transit
should provide route to the land-locked country. There are certain rules even to ban exports. Only when domestic markets are
disturbed greatly due to the exports and domestic industries dont get enough raw materials, exports can be banned which must be
done globally not for a specific country, he said.

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