SAFTA stands for South Asian Free Trade Area. It is a regional agreement between the member countries of South Asia aimed at promoting and enhancing trade liberalization and economic cooperation within the region. SAFTA was established on January 1, 2006, as a result of the 12th South Asian Association for Regional Cooperation (SAARC) Summit held in Islamabad, Pakistan in January 2004.
SAFTA aims to eliminate barriers to trade and promote economic integration among the participating countries, which include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. It provides a framework for reducing and eventually eliminating tariffs, non-tariff barriers, and other trade restrictions on a gradual basis, with the ultimate goal of creating a free trade area within South Asia.
Under SAFTA, member countries have agreed to grant preferential treatment to products originating from other SAFTA member countries, thereby facilitating the growth of intra-regional trade. The agreement covers various areas including trade in goods, services, investment, intellectual property rights, and customs cooperation. SAFTA also establishes a mechanism for settling trade disputes among member countries to ensure fair and equitable trade practices.
The main objective of SAFTA is to promote regional economic cooperation, enhance competitiveness, and achieve inclusive and sustainable economic growth in South Asia. By creating a favorable environment for trade and investment, SAFTA aims to foster economic development, poverty reduction, and improved living standards for the people of South Asia.
