Question

What are the complexities involved in free trade in the South Asian region? Critically analyses keeping SAFTA in mind? class12 cbse political science​

Answer 1

Answer:

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Explanation:

The South Asian Free Trade Area (SAFTA) is the free trade arrangement of the South Asian Association for Regional Cooperation (SAARC). The agreement came into force in 2006, succeeding the 1993 SAARC Preferential Trading Arrangement. SAFTA signatory countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

SAFTA recognizes the need for special and differential treatment for LDCs in its preamble. This has been translated in the following measures:

Market access: LDCs benefit from smaller sensitive lists in some of the SAFTA members (meaning that they have DFQF access in a larger number of products) and less stringent rules of origin (requirement of change of tariff heading and value addition of 10% less than the general requirement for non-LDCs; the general rule is 60% and there are some product-specific rules – See Rule 10 of Annex IV of the Agreement).