7.5. South Asian Free Trade Agreement (SAFTA)

♤ Another attempt was made to strengthen the economic integration of SAARC members with the implementation of the South Asian Free Trade Agreement (SAFTA) in 2006.

♤ In 2004, SAARC summit at Islamabad SAFTA was signed and it was seen as an effort to give a new lease of life to the idea of SAARC.

♤ SAFTA was operationalised from 2006 onwards & has the following features:7.5.2. SAFTA: Key Challenges However, SAFTA has continued to face certain challenges:South Asian economies are more competitive in nature.7.5.3. Way Forward In a context when less than 10% of the region's internal trade takes place under SAARC Free Trade Area it is imperative to look for ways to make SAFTA work. In recent times Track 2 initiatives, in the context of SAARC, like the South Asian Forum have put forward following recommendations-♤ Ease of Movement: Under EU, European countries have established a common market for goods, a common currency, also it provides visa free travel for countries which are part of Schengen Agreement.7.6.1. Sluggish Progress: Views from Within ♤ For the first time member countries at the Thimpu Summit in Bhutan, marking the 25th ♤ In 2014 PM Narendra Modi in his speech at the 18th SAARC Summit in Kathmandu observed that “nowhere in the world are collective efforts more urgent than in South Asia; and, nowhere else is it so modest.”