INDEX SR. NO.

1 2 3 4 5 6 7 8 9 CHAPTER INTRODUCTION TO SAARC OBJECTIVES AND PRINCIPLES OF SAARC MEMBER COUNTRIES OF SAARC SAARC SUMMITS SECRETARIATS OF SAARC POLICY OF SAARC ACHIEVEMENTS OF SAARC FUTURE OF SAARC CONCLUSION AND BIBLIOGRAPHY

CHAPTER I INTRODUCTION TO SAARC

The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian Nations, which was established on 8th December 1985 when the government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka formally adopted its charter providing for the promotion of economic and social progress, cultural development within the South Asian region and also for friendship and co-operation with others developing countries. It is dedicated to economic, technological, social and cultural development emphasising collective self reliance. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan and Bangladesh. Afganistan joined the organisation in 2007. Meetings of heads of state are usually scheduled annually; meetings of foreign secretaries, twice annually. It is headquartered in Kathmandu, Nepal. The first concrete proposal for establishing a framework for regional cooperation in South Asia was made by the late president of Bangladesh, ZiaurRahman, on 2 May 1980. Prior to this, the idea of regional co-operation in South Asia was discussed in at least three conferences: the Asian Relations Conference in New Delhi in April 1947, the Baguio Conference in the Philippines in May 1950, and the Colombo Powers Conference in April 1954. In the late 1970s, SAARC nations agreed upon the creation of a trade bloc consisting of South Asian countries. The idea of regional co-operation in South Asia was again mooted in May 1980. The foreign ministers of the seven countries met for the first time in Colombo in April 1981. The Committee of the Whole, which met in Colombo in August 1985, identified five broad areas for regional co-operation. New areas of co-operation were added in the following years. It was having 7 members Afghanistan joined in as the 8th member in year 2007.

SAARC CHARTER

Desirous of promoting peace, stability, amity and progress in the region through strict adherence to the principles of the UNITED NATIONS CHARTER and NON-ALIGNMENT, particularly respect for the principles of sovereign equality, territorial integrity, national independence, non-use of force and non-interference in the internal affairs of other States and peaceful settlement of all disputes.

Conscious that in an increasingly interdependent world, the objectives of peace, freedom, social justice and economic prosperity are best achieved in the SOUTH ASIAN region by fostering mutual understanding, good neighbourly relations and meaningful co-operation among the Member States which are bound by ties of history and culture.

Aware of the common problems, interests and aspirations of the peoples of SOUTH ASIA and the need for joint action and enhanced co-operation within their respective political and economic systems and cultural traditions. Convinced that regional co-operation among the countries of SOUTH ASIA is mutually beneficial, desirable and necessary for promoting the welfare and improving the quality of life of the peoples of the region. Convinced further that economic, social and technical co-operation among the countries of SOUTH ASIA would contribute significantly to national and collective self-reliance.

Recognising that increased co-operation, contacts and exchanges among the countries of the region will contribute to the promotion of friendship and understanding among their peoples. Recalling the DECLARATION signed by their Foreign Ministers in NEW DELHI on 2 August 1983 and noting the progress achieved in regional cooperation. Reaffirming their determination to promote such co-operation within an institutional framework.

SAARC Agenda for Culture 1. The Heads of State or Government at the Thirteenth SAARC Summit held in Dhaka in November 2005 recognized the crucial role of culture in bringing the peoples of South Asia closer. Culture could play a major role in further promoting relations and understanding among South Asian countries. Few regions have as rich and varied a cultural heritage as South Asia. They underscored that Culture could play a major role in promoting relations and understanding among South Asian countries and eventually a common identity for South Asia. South Asian Culture goes beyond the confines of museums, art galleries and other repositories and is recognized to be rooted in its deep past as a living expression of the creative impetus inherent in the peoples of the region in their daily lives, whose preservation and promotion is critical. 2. Diversity in culture needs to be acknowledged as varied experiences are reflected in the richness of cultural expression. Such diversity needs to be understood in proper perspective and tolerance and concord must be developed among cultures. 3. Many religions of South Asia, some of which in fact have their origin in the region, have inspired some of the finest manifestations of architecture, literature, sculpture, painting and music in the world. The plurality of the religious heritage, traditions and practices of South Asia must be respected, appreciated and protected throughout the region. Where national cultural policies are being articulated at high political levels in the individual SAARC countries, it is important to recall the Tenth SAARC Summits (Colombo, 31 July 1998) assertion that the region is heir to a profound civilization continuum of great antiquity for sustaining harmonious relations among South Asians. 4. With this backdrop, the Ministers of Culture of the SAARC Member States adopted the SAARC Agenda for Culture with the following activities. 1. Promotion of SAARC Culture online: Launching of a SAARC Website on Culture. 1. Creation of cultural heritage portal site by the SAARC Cultural Centre. 2. Digitalization of regional tangible and intangible cultural heritage details. 3. Development of archives employing state of the art digital technology.

4. Distribution of information inventory of cultural heritage sites in the region. 5. Create links with websites of relevant inter-governmental institutions on culture. 2. Production of cultural source materials on South Asia. 1. Member States may endeavour to introduce information on South Asian cultures at an appropriate level of education in schools. 2. SAARC Secretariat to coordinate publishing an illustrated book on South Asian Culture. 3. Involvement of member states, relevant SAARC recognized bodies and all stakeholders associated with SAARC to translate (in respective languages) for replication /dissemination in teaching and learning of South Asia and SAARC. 4. Undertake a collaborative pan-South Asian publishing programme to promote works inter alia of literature, folklore, performing arts, fine arts, diminishing arts and related traditions. 3. Cooperation with the Organizations with which SAARC has MoUs. 1. Explore the possibility of cooperation with the Organizations with whom SAARC has MoUs through appropriate SAARC bodies. 4. Establish linkage between Culture and other sectors in attaining social and economic development. 1. Member States (at the national level) and the SAARC Secretariat would coordinate (at the regional level) with all relevant SAARC processes/bodies dealing with policies and programmes which have bearing on attainment of objectives of cultural cooperation in SAARC. 2. Develop a SAARC common policy on preservation and promotion on mutually agreed areas of culture and arts. 3. Participation of cultural troupes at international cultural festivals from the SAARC Member States 4. Promote cultural and religious tourism. 5. In situ preservation of indigenous tribal cultural heritage.

5. Cooperation in the field of product development and promotion of cultural products. 1. Cooperation among the Member States on development of creative cultural enterprises, creative industries, through product development, creation of market opportunities, exchange of information and networking arrangements in accordance with the relevant SAARC instruments and processes. 2. Identify best practices in production and management of art and crafts across the region and documentation for wider dissemination. 6. SAARC Exchange Programme on Culture. 1. Develop expertise and skills in the fields of archaeology, museology and archives. 2. Imparting of skills to artisans and crafts people to improve skills in respective arts and crafts. 3. Short-term training programmes in areas of cultural interest. 4. Joint Research programmes on cultural heritage. 5. Exchange of expertise, information and technology on archaeological excavation, preservation of artifacts, protection of heritage sites etc. 6. Hold SAARC Youth Camp annually on a designated theme to promote cultural interaction among the youth. 7. Hold region-wide photography competition on a design

SAARC FILM FESTIVAL May 26th 31st 2013

14 May 2013 : PRESS RELEASE : SAARC Film Festival 2013

National Film Corporation Theatre Organised by SAARC Cultural Centre ( SCC) Colombo

SAARC Cultural Centre will be once again be hosting the SAARC Film Festival from the 26th to the 31st of May 2013, in Colombo. Regional films are becoming popular not only in the region but globally as well. The SAARC Cultural Centre takes pride in promoting Arts and Culture in the region, and given the success of the SAARC Film Festival in 2011 and 2012, the Centre will once again promote regional films by hosting the upcoming Film Festival. This year too, the Centre will showcase Feature and Documentary films of the region, and Member States of the SAARC Countries, have nominated some of their best movies from the respective countries. This will be an unique opportunity for the general public to view some of the best films from the SAARC Region. An award will be given to the Best Feature Film and documentary Film which will be adjudicated by a panel of international Jury from Russia, Iran and Singapore. Further there will be also a special workshop organized by the Centre for Directors and other artists of these films as well as experts in the Film Industry.

Last year, nominations were received from Bangladesh, India, Maldives, Pakistan and Sri Lanka. Sri Lankas nomination of Akasa Kusum , bagged first place, while the award winning Documentary Saving Face from Pakistan won the Best Documentary Film. The SAARC Cultural Centre, in keeping with its mandate of promoting culture in the region through different modes of art, will showcase films from the region as cultural expressions at its forthcoming SAARC Film Festival. The Film Festival will give all Member States an opportunity to screen some of the best films from the region. The SAARC Region has produced some films with a standard of excellence. The festival will also invite the film Directors and other artists of the nominated films to participate at the Festival. The SAARC Film Festival is bound to be a treat to all film enthusiasts and is open to the public free of charge. The SAARC Film Festival is organized by the SAARC Cultural Centre. Screenings times will be made available soon.

SAARC FILM FESTIVAL HIGHLIGHTS Best Films from the SAARC Region to be screened free of charge to the general public 26th 31st May 2013 Meet and interact with the Directors of these unique films during the festival Best documentary films from the region to be screened Special Workshops for film directors and enthusiasts, Film Expert Panel of Jury from Singapore, Iran and Russia.

CHAPTER II OBJECTIVES AND PRINCIPLES OF SAARC

The objectives and the aims of the Association as defined in the Charter are:

To promote the welfare of the people of South Asia and to improve their quality of life; 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 realise their full potential; To promote and strengthen selective self-reliance among the countries of south asia; To contribute to mutual trust, understanding and appreciation of one another's problems; To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; To strengthen co-operation with other developing countries; To strengthen co-operation among themselves in international forums on matters of common interest; and To co-operate with international and regional organisations with similar aims and purposes. To maintain peace in the region

The principles are as follows

Respect for sovereignty, territorial integrity, political equality and independence of all members states Non-interference in the internal matters is one of its objectives Cooperation for mutual benefit All decisions to be taken unanimously and need a quorum of all eight members All bilateral issues to be kept aside and only multilateral(involving many countries) issues to be discussed without being prejudiced by bilateral issues

Afghanistan was added to the regional grouping on April 2007,[4] With the addition of Afghanistan, the total number of member states were raised to eight (8). In April 2006, the United States of America and South Korea made

formal requests to be granted observer status. The European Union has also indicated interest in being given observer status, and made a formal request for the same to the SAARC Council of Ministers meeting in July 2006. On 2 August 2006 the foreign ministers of the SAARC countries agreed in principle to grant observer status to the US, South Korea and the European Union. On 4 March 2008, Iran requested observer status. Followed shortly by the entrance of Mauritius. Myanmar has expressed interest in upgrading it's status from an observer to a full member of SAARC, while Russia is interested in becoming an observer.

CHAPTER III MEMBERS COUNTRIES OF SAARC

Members of SAARC

A clickable Euler diagram showing the relationships between various multinational Asian organisations.

Current members

Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka

Observer

Australia China European Union Japan Iran Mauritius Myanmar South Korea United States

Potential future members

China has expressed interest in upgrading its status from an observer to a full member of SAARC. Supported by Pakistan, Bangladesh, Nepal, Maldives, Sri Lanka.

Burma has expressed interest in upgrading its status from an observer to a full member of SAARC.

Russia has expressed interest in becoming an observer of SAARC. Supported By India.

Others

South Africa has participated in meetings.

CHAPTER IVSAARC - South Asian Association for Regional Cooperation SAARC summits
No Date Country Host Host leader

1st

78 December 1985

Bangladesh Dhaka

AtaurRahman Khan

2nd 1617 November 1986

India

Bangalore

Rajiv Gandhi

3rd 24 November 1987

Nepal

Kathmandu Marich Man Singh Shrestha

4th 2931 December 1988

Pakistan

Islamabad

Benazir Bhutto

5th 2123 November 1990

Maldives

Mal

Maumoon Abdul Gayoom

6th 21 December 1991

Sri Lanka

Colombo

RanasinghePremadasa

7th 1011 April 1993

Bangladesh Dhaka

Khaleda Zia

8th 24 May 1995

India

New Delhi P. V. NarasimhaRao

9th 1214 May 1997

Maldives

Mal

Maumoon Abdul Gayoom

10th 2931 July 1998

Sri Lanka

Colombo

Chandrika Kumaratunga

11th 46 January 2002

Nepal

Kathmandu SherBahadurDeuba

12th 26 January 2004

Pakistan

Islamabad

Zafarullah Khan Jamali

13th 1213 November 2005

Bangladesh Dhaka

Khaleda Zia

14th 34 April 2007

India

New Delhi Manmohan Singh

15th 13 August 2008

Sri Lanka

Colombo

MahindaRajapaksa

16th 2829 April 2010

Bhutan

Thimphu

JigmeThinley

17th 1011 November 2011[26]

Maldives

Addu

Mohammed Nasheed

18th 2013[27]

Nepal

Kathmandu Khil Raj Regmi

CHAPTER V SECRETARIAT OF SAARC

Secretariat of the South Asian Association for Regional Cooperation inKathmandu, Nepal The SAARC Secretariat was established in Kathmandu on 16 January 1987 and was inaugurated by Late King Birendra Bir Bikram Shah of Nepal. It is headed by a Secretary General appointed by the Council of Ministers from Member Countries in alphabetical order for a three-year term. He is assisted by the Professional and the General Services Staff, and also an appropriate number of functional units called Divisions assigned to Directors on deputation from Member States.[8] The Secretariat coordinates and monitors implementation of activities, prepares for and services meetings, and serves as a channel of communication between the Association and its Member States as well as other regional organizations. The Memorandum of Understanding on the establishment of the Secretariat[8] which was signed by Foreign Ministers of member countries on 17 November 1986 at Bangalore, India contains various clauses concerning the role, structure and administration of the SAARC Secretariat as well as the powers of the Secretary-General. In several recent meetings the heads of state or government of member states of SAARC have taken some important decisions and bold initiatives to strengthen the organisation and to widen and deepen regional co-operation.

SAARC Development Fund Secretariat The SAARC Development Fund (SDF) Secretariat had been inaugurated by the Heads of State/Governments of SAARC Member States in April 2010 during the 16th SAARC Summit in Thimphu. The primary objectives of the SDF are:

To promote the welfare of the people of SAARC Region, To improve the quality of life, and To accelerate economic growth, social progress and poverty alleviation in the SAARC Region.

Focus Areas of SDF. SDF has three Windows i.e. Social, Economic and Infrastructure. Currently Social Window is in operation and projects are under implementation in SAARC countries. There is a need to open Economic and Infrastructure Windows in order to provide maximum benefits of SDF for accelerating Economic growth and Infrastructure development in SAARC countries.

Secretaries-General of SAARC AbulAhsan 16 January 1985 to 15 October 1989

Kishore Kant Bhargava 17 October 1989 to 31 December 1991

Ibrahim HussainZaki

1 January 1992 to 31 December 1993

Yadav Kant Silwal

1 January 1994 to 31 December 1995

Naeem U. Hasan

1 January 1996 to 31 December 1998

Nihal Rodrigo

1 January 1999 to 10 January 2002

Q.A.M.A. Rahim

11 January 2002 to 28 February 2005

LyonpoChenkyabDorji 1 March 2005 to 29 February 2008

Sheel Kant Sharma

1 March 2008 to 28 February 2011

FathimathDhiyanaSaeed 1 March 2011 to 11 March 2012 12 March 2012 to present[25]

Ahmed Saleem

CHAPTER VI POLICY OF SAARC

South Asian Free Trade Area SAPTA was envisaged primarily as the first step towards the transition to a 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, 1819 December 1995) agreed on the need to strive for the realisation 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. The Tenth SAARC Summit (Colombo, 2931 July 1998) decided to set up a Committee of Experts (COE) to draft a comprehensive treaty framework for creating a free trade area within the region, taking into consideration the asymmetries in development within the region and bearing in mind the need to fix realistic and achievable targets. The SAFTA Agreement was signed on 6 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006, and the Trade Liberalization Programme commenced from 1 July 2006. Under this agreement, SAARC members will bring their duties down to 20 per cent by 2009. Following the Agreement coming into force the SAFTA Ministerial Council (SMC) has been established comprising the Commerce Ministers of the Member States. SAARC Visa Exemption Scheme The SAARC Visa Exemption Scheme was launched in 1992. The leaders at the Fourth Summit (Islamabad, 2931 December 1988), while realising the importance of having people to people contacts, among the peoples of SAARC countries, decided that certain categories of dignitaries should be entitled to a Special Travel document, which would exempt them from visas within the region. As directed by the Summit, the Council of Ministers regularly kept under review the list of entitled categories. Currently the list included 24 categories of entitled persons, which include Dignitaries, Judges of higher courts, Parliamentarians, Senior Officials, Businessmen, Journalists, Sportsmen etc. The Visa Stickers are issued by the respective Member States to the entitled categories of that particular country. The validity of the Visa Sticker is generally for one year. The implementation is reviewed regularly by the Immigration Authorities of SAAR Member States.

Free trade agreement

Over the years, the SAARC members have expressed their unwillingness on signing a free trade agreement. Though India has several trade pacts with Maldives, Nepal, Bhutan and Sri Lanka, similar trade agreements with Pakistan and Bangladesh have been stalled due to political and economic concerns on both sides. India has been constructing a barrier across its borders with Bangladesh and Pakistan. In 1993, SAARC countries signed an agreement to gradually lower tariffs within the region, in Dhaka. Eleven years later, at the 12th SAARC Summit at Islamabad, SAARC countries devised the South Asia Free Trade Agreement which created a framework for the establishment of a free trade area covering 1.4 billion people. This agreement went into force on January 1, 2008. Under this agreement, SAARC members will bring their duties down to 20 per cent by 2009

CHAPTER VII ACHIEVEMENTS OF SAARC

SAARC Award The Twelfth Summit (Islamabad, January 2004) approved the institution of the SAARC Award to honour and encourage outstanding individuals and organisations within the region. The main objectives of the SAARC Award are:

To encourage individuals and organisations based in South Asia to undertake programmes and activities complementing the efforts of SAARC

To encourage individuals and organisations in South Asia contributing to the improvement of the conditions of women and children To honour outstanding contributions and achievements of individuals and organisations within the region in the fields of peace, development, poverty alleviation, environment protection and regional co-operation making the SAARC Award the most prestigious Award in the region; and To honour any other outstanding contributions and achievements, not covered above, of individuals and organisations in the region.

The SAARC Award comprises a gold medal, a letter of citation and cash prize of US $ 25,000. Since institution of SAARC Award in 2004, it has been awarded only once and the Award was posthumoulsy conferred upon Late President ZiaurRahman of Bangladesh.[19] SAARC Youth Award The SAARC Youth Award is awarded to outstanding individuals from the SAARC region. The award is notable due to the recognition it gives to the Award winner in the SAARC region. The award is based on specific themes which apply to each year. The award recognises and promotes the commitment and talent of the youth who give back to the world at large through various initiatives such as Inventions, Protection of the Environment and Disaster relief. The recipients who receive this award are ones who have dedicated their lives to their individual causes to improve situations in their own countries as well as paving a path for the SAARC region to follow. The Committee for the SAARC Youth Award selects the best candidate based on his/her merits and their decision is final.

Previous Winners:

1997: Outstanding Social Service in Community Welfare Mr. Md. SukurSalek (Bangladesh) 1998: New Inventions and Shanu Dr.NajmulHasnain Shah (Pakistan) 2001: Creative Photography: South Asian Diversity Mr.MushfiqulAlam (Bangladesh) 2002: Outstanding contribution to protect the Environment Dr.Masil Khan (Pakistan) 2003: Invention in the Field of Traditional Medicine Mr. Hassan Sher (Pakistan) 2004: Outstanding contribution to raising awareness for TB and/or HIV/AIDS Mr.Ajij Prasad Poudyal (Nepal) 2006: Promotion of Tourism in South Asia Mr. Syed Zafar Abbas Naqvi (Pakistan) 2008: Protecting the Environment in Ms.UswattaLiyanageDeepaniJayantha (Sri Lanka) South Asia

2009: Outstanding contribution to humanitarian works in the aftermath of Natural Disasters Dr.Ravikant Singh (India) 2010: Outstanding contribution for the Protection of Environment and mitigation of Climate Change Ms. Anoka Primrose Abeyrathne (Sri Lanka)

CHAPTER VIII FUTURE OF SAARC

The writer is distinguished Professor of Economics, Beaconhouse National University and FC College University South Asia is at a historic moment of transforming the economic conditions of its people and playing a leadership role in the global economy. For the first time in the last three centuries, the global economy is undergoing a shift in its centre of gravity from the continents of Europe and North America to Asia. If present trends of GDP growth in China, the US and India respectively continue, then in the next 25 years, China will be the largest economy in the world and India the third largest, after the US. If South Asia achieves economic integration, it could emerge as the second largest economy in the world. Thus, South Asia together with China, could become the greatest economic powerhouse in human history. The challenge before the political leadership of the various Saarc countries is to actualise this great potential for transforming the material conditions of their people and performing a leadership role in building a better world. It is in this context that the 17th Saarc Summit in Addu (Maldives) on the theme of Building Bridges, gains significance. Five interrelated policy challenges need to be addressed at the individual country level on the basis of regional cooperation within the SAARC framework: Rapid implementation of free trade and investment envisaged in the South Asian Free Trade Agreement needs to be undertaken. Inspite of commendable recent progress, South Asia remains the least integrated region in the world. Intra-regional trade as a share of total trade in South Asia remains at about five per cent, which is the lowest for any region in the world. Other measures of integration such as cross-border investment; cross-border movement of people; sharing of ideas; communication as measured by telephone calls (only seven per cent of international telephone calls are regional, compared to 71 per cent in East Asia); and transfer of technology and royalty payments are all extremely low. Achieving greater economic integration will require substantially improved regional connectivity and overcoming interstate tensions and mistrust; The process of economic integration and the welfare of people should not be held hostage to the resolution of interstate disputes. Indeed, as economic integration is undertaken, new constituencies for peace will emerge that will facilitate the resolution of interstate disputes. Nevertheless, the core issues of cross-border terrorism and outstanding territorialdisputes such as Kashmir must be addressed to establish the basis of lasting peace; Inspite of impressive economic growth rates in the last two decades, mass poverty persists in South Asia as this region is home to half of the worlds poor population. Therefore, it is necessary to change the structure of the existing elite-based economic growth process which induces increasing income inequalities and constricts the poverty reduction effect of growth. A new inclusive growth process needs to be

undertaken whereby the middle classes and the poor can have access to productive resources, high wage employment and equitable access over factor and product markets. Saarc can provide the framework for sharing and pursuing best practices in this regard; Strengthening democracy by making it more participatory. This involves creating institutional structures for decentralised governance from the federal to the provincial/state, district and down to the grassroots levels: the purpose being to enable people to participate systematically in decisions that affect their economic and social life, their physical security and the life-support systems of the natural environment; Climate changeand the expected intensification of existing water stress in some countries of South Asia, food shortages and rising sea levels threaten the stability of economies and societies in South Asia.Regional cooperation to undertake joint adaptation and mitigation measures to face this crisis are therefore necessary.

The future of South Asia is delicately poised like a dewdrop on a blade of grass. We need to draw upon our civilisational wellsprings of innovativeness to chart a new course for ourselves and the world. Published in The Express Tribune, November 15th, 2011.

CONCLUSION
The Agreement on the South Asian Free Trade Area is an agreement reached at the 12th SAARC summit at Islamabad, capital of Pakistan on 6 January 2004. It creates a framework for the creation of a free trade area covering 1.4 billion people in India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives. The seven foreign ministers of the region signed a framework agreement on SAFTA with zero customs duty on the trade of practically all products in the region by end 2016. The new agreement i.e. SAFTA, came into being on 1 January 2006 and will be operational following the ratification of the agreement by the seven governments. SAFTA requires the developing countries in South Asia, that is, India, Pakistan and Sri Lanka, to bring their duties down to 20 percent in the first phase of the two year period ending in 2007. In the final five year phase ending 2012, the 20 percent duty will be reduced to zero in a series of annual cuts. The least developed nations in South Asia consisting of Nepal, Bhutan, Bangladesh and Maldives have an additional three years to reduce tariffs to zero. India and Pakistan have signed but not ratified the treaty. .

BIBLIOGRAPHY
www.saarcculture.org www.sdfsec.org

Economics of Global Trade And Finance by Prof. Johnson and Prof. Mascarenhas.