The South Asian Free Trade Area (SAFTA) Agreement was formed in 2006 with the aim of promoting trade and economic cooperation among the countries of South Asia. The agreement is a crucial step towards the development of the region as it provides for the creation of a free trade area among the member countries. Aspiring candidates of the UPSC exam must be familiar with the SAFTA agreement and its implications for South Asia.
The SAFTA Agreement is an important topic for aspiring civil servants appearing for the UPSC exam. The agreement came into force on January 1, 2006, and includes eight member states – India, Pakistan, Nepal, Bhutan, Bangladesh, Maldives, Sri Lanka, and Afghanistan. The agreement is based on the principle of non-discrimination and provides for the elimination of trade barriers among the member countries.
Under the SAFTA Agreement, member countries are required to reduce tariffs on goods traded within the region gradually. The agreement also provides for the creation of a dispute resolution mechanism to resolve trade disputes among member countries. Additionally, the agreement seeks to promote the cooperation of the member countries in the areas of investment, services, and intellectual property rights.
The SAFTA Agreement has a significant impact on the economies of South Asia. It creates opportunities for businesses to expand and trade freely with other member countries. The agreement also fosters economic growth and job creation in the region, contributing to poverty reduction.
The SAFTA Agreement is a critical part of the South Asian Association for Regional Cooperation (SAARC) – a regional intergovernmental organization that seeks to promote economic and cultural ties among the member states. The SAFTA agreement is an important tool for achieving the goals of the SAARC charter, which include promoting regional cooperation, peace, and stability.
In conclusion, the SAFTA Agreement is an essential tool for promoting regional trade and economic cooperation among the member states of South Asia. UPSC aspirants must be familiar with the agreement and its implications for South Asia as it is a significant topic for the exam. The agreement has the potential to unlock the economic potential of the region and pave the way for a brighter future for South Asia.