5/6/12 BBA-14(7) BBA-14(7)

5/6/12 BBA-14(7) BBA-14(7)

Presented by: Muhammad Adil Jabran Umer Muhammad Faisal Click to edit Master subtitle style Ashraf Syed Uzair Amin Danish Javaid

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Agenda/ contents

Introduction members AND FUTURE MEMBERS

Objectives Current

OBSERVER AREAS SAARC Trade

OF COOPERATION share in Global Trade

Agreements

SAPTA

SAFTA Countervailing

forces

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Introduction
The

South Asian Association for Regional Cooperation (SAARC) was established when its Charter was formally adopted on December 8, 1985 by the Heads of State or Government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. provides a platform for the peoples of South Asia to work together in a spirit of friendship, trust and understanding. It aims to accelerate the process of economic and social development in Member States.
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SAARC

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Objectives
To

promote the welfare of the people of South Asia and to improve their quality of life accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potential; promote and strengthen collective self-reliance among the countries of South Asia; contribute to mutual trust, understanding and appreciation of one another's problems; promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; BBA-14(7) BBA-14(7)

To

To

To

To

Current members(alphabetically)

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Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka

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OBSERVER AND FUTURE MEMBERS

Australia China European Iran Japan Mauritius Myanmar South

Union

(Burma)

Korea States
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United

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AREAS OF COOPERATION
AREAS

OF COOPERATION and Population Activities; Youth and Children; and Forestry; and Technology and Meteorology; Resources Development; and

Agriculture and Rural Development;

Health

Women,

Environment Science Human

Transport. Recently,

high level Working Groups have also been established to strengthen BBA-14(7) BBA-14(7)

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SAARC share in Global Trade

In

particular, South Asias share in global trade is a little over 1% in global merchandise exports increased from 0.9% in 1990 to 1.2% in 2005 in global commercial services exports increased from 0.87% in 1990 to 2.5% in 2005

Share

Share

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Intra-regional Merchandise Exports, 2005 (as % share of each regions total exports)

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Regional Shares in World Merchandise Exports, 1990, 2000, 2005

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SAARC REGIONAL GDP

SAARC

is mainly dominated in terms of GDP by big countries i.e. India and Pakistan thus creating a sense of monopoly. has highest share of GDP of 79% has a share of 11%.

India

Pakistan The

rest 6 countries have combined share of 10%.

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Maldiv es 0 %

Pakist an1 1 Ne % pal 1 %

Sri Lanka 2 %

Afghanist an 1 %

Banglade sh 6 %

Bhut an0 %

In di 7 a 9 %

Country Share of SAARC Regional GDP 2005, (US$ 995.82 billion)

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Trade Agreements
The

launching of South Asian Preferential Trade Arrangement (SAPTA) in 1995 was the first major political breakthrough for the SAARC since it was the first regional agreement on economic cooperation. decade after the preferential trade arrangement (PTA) took effect, the South Asian Free Trade Agreement (SAFTA) was signed in 2004 and came into effect in 2006, replacing the SAPTA.

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SAPTA
In

December 1991, the Sixth Summit held in Colombo approved the establishment of an Inter-Governmental Group (IGG) to formulate an agreement to establish a SAARC Preferential Arrangement (SAPTA) by 1997. Given the consensus within SAARC, the Agreement on SAPTA was signed on 11 April 1993 and entered into force on 7 December 1995 well in advance of the date stipulated by the Colombo Summit. The Agreement reflected the desire of the Member States to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions. BBA-14(7) BBA-14(7)

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Principles on SAPTA
Overall

reciprocity and mutuality of advantages so as to benefit equitably all contracting states. of tariff reform step by step, improved and extended in successive stages through periodic reviews. of the special needs of the least developed contracting states and agreement on concrete preferential measures in their favors.

Negotiation

Recognition

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South Asian Free Trade Area (SAFTA)

The

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idea of a regional FTA was under discussion since the early 1990s as can be seen from the deliberations within the offcial SAARC process. sixteenth session held in Delhi in December 1995 agreed to work towards the setting up of SAFTA Finally, the SAFTA Agreement was signed on January 6, 2004 during the 12th Summit in Islamabad. Agreement came into operation on January 1, 2006, and the formal notifcation was issued by the SAARC Secretariat on March 22, 2006.
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The

The

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SAFTA
SAFTA

requires the developing countries in South Asia, that is, India, Pakistan and Sri Lanka, to bring their duties down to 20 percent in the first phase of the two year period ending in 2007. the final five year phase ending 2012, the 20 percent duty will be reduced to zero in a series of annual cuts. least developed nations in South Asia consisting of Nepal, Bhutan, Bangladesh and Maldives have an additional three years to reduce tariffs to zero. has signed but not ratified the treaty, BBA-14(7) BBA-14(7)

In

The

Pakistan

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Countervailing forces
Political

issues

Kashmir dispute Lankan civil war

Sri

Terrorism Monopolistic Since

Behavior of India

its foundation SAARC has not act as a platform to solve disputes between countries and has not focused on core economical and social issues.

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Thank You