Saarc and Safta: Dynamic of Trade Facilitation in South Asia

With one of largest concentration of poor South Asia intra-regional trade stands at less than one third of its potential. Regional economic frameworks are rather impediments than a facilitation inform of irrational sensitive lists, non-tariff and para tariff barriers, existence of more welcoming and responsive bilateral trade agreement coupled with very weak infrastructure and nonexistence of political will to support cross border trade. <br><br>SAFTA’s implementation in true spirit to boost intra-regional trade has become indispensable for the South Asian region to deepen the regional market integration to tap the economic and commercial potential being the most potent solution to eradicate widespread disparities in form of poverty, illiteracy and unemployment. The viable and doable way of enhancing intra-regional trade is strengthening and extending the SAFTA.<br><br> Effective implementation and extension of SAFTA rules will not only enhance the intra-regional trade, rather will accelerate the process of regional integration. To overcome the shortcoming of SAFTA, the SAARC countries should accelerate and strictly follow the schedules for tariff cuts, gradual reduction of the item in sensitive lists to broaden the scope and coverage of SAFTA maker SAFTA more striking than the other bilateral trade agreements across the region. SAARC today needs mobility of people by opening the visa regime within SAARC and facilitate cross regional trade and commerce by eliminating non-tariff barriers and curbing para-tariffs. <br>