Member of SAARC

Observers

Australia

China

European Union

Japan

Iran

Mauritius

Myanmar

South Korea

United States

Introduction:-

The idea of co-operation in South Asia was discussed in at least three

conferences: the Asian Relations Conference held in New Delhi on April

1947.

The Baguio Conference in the Philippines on May 1950; and the Colombo

Powers Conference held in Sri Lanka in April 1954.In the ending years of

the 1970s, the seven inner South Asian nations that included Bangladesh,

Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon the

creation of a trade bloc and to provide a platform for the people of South

Asia to work together in a spirit of friendship, trust and understanding.

Officially, the union was established in Dhaka with Kathmandu being

union's secretariat-general. The first SAARC summit was held in Dhaka on

7–8 December 1985 and hosted by the President of Bangladesh Hussain

Ershad. The declaration signed by King of Bhutan Jigme Singye, President

of Pakistan Zia-ul-Haq, Prime Minister of India Rajiv Gandhi, King of

Nepal Birendra Shah, President of Sri Lanka JR Jayewardene, and

President of Maldives Maumoon Gayoom.

1.To promote the welfare of the peoples of South Asia and to

improve their quality of life

2.To 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.

Objectives:-

3.To contribute to mutual trust, understanding and appreciation

of one another’s problems.

4.To strengthen cooperation with other developing countries.

5. To cooperate with international and regional organizations with

similar aims and purposes.

Reducing barriers for export to SAARC countries:-

•The Federation of Chambers of Commerce and Industry of Sri Lanka

(FCCISL), the Secretariat dealing with SAARC Chamber of

Commerce and Industry (SCCI), wants to minimize any trade barriers

with other SAARC countries.

•Hildon U. Hamangoda, Director, SAARC and International Affairs,

said that according to compiled data trade among SAARC countries is

less than five percent of the total trade of the region with the rest of the

world. But other regional blocs are showing much bigger volumes of

intra-regional trade. For instance the North America Free Trade

Agreement intra-regional trade is over 50% and ASEAN countries

have over 20% trade among its member countries. The Intra-SAARC

trade is dismally low as compared to other regions. The trade and

economic activity needs to be increased.

South Asian Free Trade Area (SAFTA) leading subsequently

towards a Customs Union, Common Market and Economic Union.

In 1995, the Sixteenth session of the Council of Ministers (New

Delhi, 18–19 December 1995) agreed on the need to strive for the

realization of SAFTA and to this end an Inter-Governmental

Expert Group (IGEG) was set up in 1996 to identify the necessary

steps for progressing to a free trade area.

South Asian free trade:-

SAARC TRADE :-

The major focus-areas of SAARC-TPN are:

1.Promotion of SMEs especially women SMEs throughregional value chains.2.Improvement in quality infrastructure.3.Reduction of non-tariff barriers/measures.

Saarc and Common Market:-

Saarc countries should accept that there should be no change in

existing boundaries including the line of control in Kashmir. They

must together work for a common market and a future common

currency and total freedom of movement for all citizens for

tourism, business and development, including humanitarian help.

The nuclear weapons of India and Pakistan should be under united

command to be deterrent against external aggression from outside

saarc till universal disarmament is achieved. Besides the good it

would bring to the well being of saarc peoples, it would ensure

the region to be treated as a equal superpower

SAARC Trade Promotion:-

The strategic management capacity and specialist competencies of the

SAARC Trade Promotion Network and its member organizations have

improved. Commissioned by the German Federal Ministry for Economic

Cooperation and Development (BMZ), the project is supporting the

SAARC Trade Promotion Network (SAARC-TPN) and its five working

groups (Non-tariff Trade Restrictions; Quality Infrastructure; Business-

to-Business Initiatives; Trade Information Portal; Trade Promotion in

SMEs; Donor Co-ordination) in improving strategic management and

organizational development. The project promotes communication and

information-sharing between network members, as well as competences

for identifying priority measures to overcome trade restrictions,

facilitating complex negotiations to develop solutions, and properly

representing the interests of the network.

Regional cooperation

The Heads of State or Government expressed their strong

determination to deepen regional integration for peace, stability

and prosperity in South Asia by intensifying cooperation, inter

alia, in trade, investment, finance, energy, security, infrastructure,

connectivity and culture; and implementing projects, programmes

and activities in a prioritized, result-oriented and time-bound

manner.

South Asian Economic Union (SAEU)

The Leaders renewed their commitment to achieve South Asian

Economic Union (SAEU) in a phased and planned manner

through a Free Trade Area, a Customs Union, a Common

Market, and a Common Economic and Monetary Union.