Keywords:
Related Articles:
Abstract
This article provides an in-depth analysis of the challenges of implementing the South Asian Free Trade Agreement (SAFTA), which was signed at the 12th SAARC Summit in Islamabad. It examines the key provisions of the agreement, including its trade liberalization program, rules of origin, and measures for technical assistance for the Least Developed Countries. The study identifies the major challenges to successful implementation. These include the deep-seated political mistrust between member states, the persistence of extensive sensitive lists that exclude key products from liberalization, the prevalence of non-tariff barriers, and the significant infrastructural deficits that hinder regional trade. The research then proposes a possible roadmap for overcoming these challenges. This roadmap emphasizes the need for strong political will, a phased and pragmatic approach to liberalization, and a focus on trade facilitation and infrastructure development. The paper concludes that while the signing of SAFTA was a historic step, its successful implementation would require a concerted and sustained effort to address both the economic and the political obstacles to regional integration.
Full Text
The signing of the South Asian Free Trade Agreement (SAFTA) in 2004 was a moment of great promise for regional economic integration. This paper provides a realistic and detailed analysis of the formidable challenges to its implementation and proposes a possible roadmap for moving forward. The first part of the study is a close examination of the SAFTA agreement itself. It analyzes its key components, such as the tariff reduction schedules, and highlights its potential weaknesses, particularly the provisions that allow member states to maintain long "sensitive lists" of products that are excluded from the liberalization process. The core of the article is a comprehensive analysis of the major implementation challenges. The primary challenge identified is political: the deep-rooted mistrust and ongoing conflict between India and Pakistan, which the paper argues could hold the entire SAFTA process hostage. The second major challenge is structural: the paper details the significant non-tariff barriers, the poor quality of cross-border transport infrastructure, and the cumbersome customs procedures that are often more significant impediments to trade than tariffs. The final section of the paper outlines a multi-pronged roadmap for making SAFTA a success. This includes a call for the political leadership to invest in confidence-building measures, a recommendation to progressively prune the sensitive lists, and a strong emphasis on the need for massive, coordinated investment in regional transport and trade facilitation infrastructure. The findings suggest that SAFTA's success is not pre-ordained but will depend on a sustained and holistic effort to build both the "hardware" and the "software" of regional integration.