SOUTH ASIAN TRADE COOPERATION WITHIN SAARC AND WITH ASEAN: RATIONALE, PROSPECTS, REALITIES

This comprehensive analysis examines the state of trade cooperation in South Asia within the framework of the South Asian Association for Regional Cooperation (SAARC) and explores the prospects for enhanced economic relations with the Association of Southeast Asian Nations (ASEAN) during the late 1980s. The article investigates the rationale behind regional trade cooperation in South Asia, analyzing the economic complementarities, political considerations, and strategic imperatives that drive integration efforts. The research assesses the progress achieved under SAARC's economic cooperation agenda, particularly the South Asian Preferential Trading Arrangement (SAPTA) negotiations. The study examines the comparative advantages of SAARC-ASEAN economic relations and identifies potential areas for expanded trade and investment flows. The article also analyzes the constraints on regional cooperation, including political tensions, infrastructure limitations, and policy divergences among member states. Furthermore, the research evaluates the impact of changing global economic trends on South Asian regionalism and proposes strategies for enhancing both intra-regional and inter-regional economic cooperation.

The late 1980s represented a crucial period for regional cooperation in South Asia, with this article providing a comprehensive analysis of trade cooperation within SAARC and with ASEAN. The research begins by examining the historical context of South Asian regionalism, tracing the evolution of SAARC from its establishment in 1985 through its early institutional development and program implementation. The analysis explores the economic rationale for regional cooperation, assessing the trade complementarities, investment opportunities, and collective bargaining advantages that could benefit South Asian countries. The article investigates the progress of SAARC's economic agenda, particularly the negotiations for the South Asian Preferential Trading Arrangement (SAPTA) and the challenges encountered in reaching agreement on tariff reductions and trade liberalization. The study examines the potential for enhanced economic relations with ASEAN, analyzing how the successful ASEAN experience could inform South Asian cooperation and identifying specific sectors where SAARC-ASEAN collaboration could yield mutual benefits. The research assesses the political constraints on regional cooperation, including bilateral tensions, security concerns, and differing economic policy orientations among SAARC member states. Based on the comprehensive assessment, the article identifies both achievements and limitations in South Asian regional cooperation and proposes strategic directions for strengthening economic integration within SAARC and expanding relations with ASEAN. The findings provide valuable insights into the challenges of regional cooperation in politically complex environments and contribute to understanding how developing regions can leverage economic cooperation for collective development.