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REGIONAL TRADE BLOCKS
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NATIONAL INSTUITE OF FASHION TECHNOLOGY
Regional trade blocks are associations of nations at governmental level to

promote trade within the block and defend its members against global
competition.
Defense against global competition is obtained through
established tariffs on goods produced by member states, import quotas,

government subsidies, onerous bureaucratic import processes, and technical
and other non-tariff barriers.
Since trade is not an isolated activity, member states within regional blocks
also cooperate in economic, political, security, climatic, and other issues
affecting the region.
SOUTH ASEAN ASSOCIATION FOR REGIONAL

COOPERATIONS
Establishment 1985
Secretariat Kathmandu, Nepal
Secretary-general- Arjun Bahadur Thapa
Members- India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives
and Afghanistan.
Observers- Australia, China, the European Union, Iran, Japan, Mauritius,
Myanmar, South Korea and the United States.
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Though SAARC covers 3% area of world but it has 21% population of
the world.
Myanmar seeks future membership while Turkey and Russia applied for
observer status.
South Asian countries have shared common culture, ethnicity, history,
geography.
Vision for SAARC in 1998, which envisaged the establishment of a
South Asian Free Trade Area by 2010, a Customs Union by 2015 and an
Economic Union by 2020.

Mr. Vajpayee even advocated that the culmination of this process
should be the establishment of a SAARC Monetar
The South Asian Association for Regional Cooperation (SAARC) is a political

and economical organization in South Asia. It is the largest regional
organization and was established on December 8, 1985 by Bangladesh,
Bhutan, Maldives, Nepal, Pakistan, India, and Sri Lanka. Eighth country
Afghanistan was added on the request of India on November 13th, 2005 and
became a member of SAARC on April 3, 2007. The purpose of the
establishment of SAARC is to provide platform to the people of Southern Asia
to make joint efforts to promote harmony, conviction, and understanding
among states.WTO aims to facilitate the free trade among member
countries. But the issues of restriction on trade, customers safety, human
privileges and environmental harms are prominent in developed and less
developed countries.
After the failure of its implications, an alternative regional trade agreement
(RTA) was established in WTO and then developed countries and developing
countries moved to regional trade agreements or bilateral trade agreements.
SAARC was entered in regional trade agreement in 2004. Before entering in
the (RTA), South Asian Preferential Trading Agreement (SAPTA) was formed in
1993 and it would be changed into South Asian Free Trade Agreement
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(SAFTA) in January 6, 2004 on the 12th Summit at Islamabad. (Ali & Talukder,
2009 and Chaturvedi et al., 2007).
This study highlights the main trade barriers among SAARC member states.
This work also attempts to identify the maximum facilitations provided by
the management of SAARC and by the legal regulations of the governments
of the contracting states. Literature gives a brief discussion on the SAARC
and then trade among SAARC. Centre for Promoting Ideas, USA. Before
moving towards the concerned topic of barriers and facilitations of trade
among SAARC, research study mentioned the basic trade agreements of
SAARC member states.
Eight NationsAfghanistan, Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan, and Sri Lanka.
SAARC EXTERNAL RELATIONS

Six Observers China, Japan, European Union, Republic of Korea,
United States, Iran.
GLOBALISM
Globalism is defined as a borderless world programme that implies a
tendency towards a global social system. Its historical origins reached a new
stage in the post-Second World War era since the sense of geographical
distance has dramatically changed; some even speak of the end of
geography. The world is now considered as one global village. Globalization
is
new
phenomenon.
regionalization
and
There
globalization.
is
an
intricate
Compared
to
relationship
between
regionalism
with
an
impressive theoretical tradition behind it, globalism is a more recent concept

in social sciences. Whether its consequences are seen as catastrophic or as
the ultimate unification of the world, the concept of globalisation is often
used in a rather loose and ideological sense. However, there are also many
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definitions of regionalism. For the critics, the regionalist trend constitutes a

threat to the multilateral system, on the other hand, for the enthusiasts the
regionalism could form the basis for an improved multilateral system. The
effectiveness of regional governance arrangements has been recognized
since the end of the Second World War. Now regionalism has emerged as one
of the dominant themes of World politics in the post-Cold War
REGIONALISM
Regions in international politics are described as a limited number of states
linked
by
geographical
relationship
and
by
degree
of
mutual
independence and could be differentiated according to the level and scope

of exchange, formal organizations, and political interdependence.4 It
involves formal and informal agreements marked by explicit and implicit
principles, norms, rules and decision-making procedures around which
actors expectations converge in a given area of international relations.5
Regionalization does not come about unless the states in a particular region
want it. It may come about through political regime, economic policy or
security but often triggers from political events that set the process in
motion. The foreign policy and political events identify this change in a state
as an actor in regional integration process. Region as a geographical unit is
delimited by more or less through natural physical barriers and is marked by
ecological characteristics that as social system imply trans-local relations
between human groups. Region is organized for cooperation in the cultural,
economic, and political and security fields. Region in civil society takes shape
when the organizational framework
The idea of regional cooperation in South Asia was first raised in November
1980. After consultations, the foreign secretaries of the seven founding
countriesBangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri
Lankamet for the first time in Colombo in April 1981. This was followed a
few months later by a meeting of the Committee of the Whole, which
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identified five broad areas for regional cooperation. The foreign ministers, at
their first meeting in New Delhi in August 1983, adopted the Declaration on
South Asian Association for Regional Cooperation (SAARC) and formally
launched the Integrated Program of Action (IPA) in the five agreed areas of
cooperation:
agriculture;
rural
development;
telecommunications;
meteorology; and health and population activities. Later, transport; postal

services; scientific and technological cooperation; and sports, arts, and
culture were added to the IPA. Afghanistan became the newest member of
SAARC at the 13th annual summit in 2005. China and Japan were granted
observer status at the same.
The SAARC seeks to promote the welfare of the peoples of South Asia,
strengthen collective self-reliance, promote active collaboration and mutual
assistance in various fields, and cooperate with international and regional
organizations.
POLITICAL COOPERATION
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Lasting peace and prosperity of the Indian subcontinent has been elusive
because of the various ongoing conflicts and in the region. Political dialogue
is often conducted on the margins of SAARC meetings which have refrained
from interfering in the internal matters of its member states. During the 12th
and 13th SAARC summits, extreme emphasis was laid upon greater cooperation between the SAARC members to fight terrorism
South Asian Free Trade Area
Countries under the South Asian Free Trade Area

SAFTA 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 realization 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
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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. In 2012 the SAARC exports increased substantially to
US$354.6 billion from US$206.7 billion in 2009. Imports too increased from
US$330 billion to US$602 billion over the same period. But the intra-SAARC
trade amounts to just a little over 1% of SAARC's GDP. In contrast,
in ASEAN (which is actually smaller than SAARC in terms of size of economy)
the intra-bloc trade stands at 10% of its GDP.
SAARC SUMMIT
The Charter (Article III) provides that the Heads of State or Government
"shall meet once a year or more often as and when considered necessary by
the Member States". However, the Summit has generally been convened at
an interval of one and half year or so. The next i.e. Sixteenth Summit of the
Heads of State or Government would be held at Thimphu on 28-29 April
2010.
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Summit Declarations provide directives and mandate for regional cooperation. Following are the past Summit Declarations:
First SAARC Summit , Dhaka, 1985
Second SAARC Summit, Bangalore, 1986
Third SAARC Summit , Kathmandu, 1987
Forth SAARC Summit, Islamabad, 1986
Fifth SAARC Summit, Male, 1990
Sixth SAARC Summit, Colombo ,1991
Seventh SAARC Summit Dhaka, 1993
Eighth SAARC Summit New Delhi, 1995
Ninth SAARC Summit Male, 1997
Tenth SAARC Summit, Colombo, 1998
Eleventh SAARC Summit, Kathmandu, 2002
Twelfth SAARC Summit, Islamabad, 2004
Thirteenth SAARC Summit, Dhaka, 2005
Fourteenth SAARC Summit , New Delhi, 2007
Fifteenth SAARC Summit, Colombo, 2008
Sixteenth SAARC Summit, Thimpu , 2010

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Seventeenth SAARC Summit, Addu City, 2011
Eighteenth SAARC Summit, Kanthmandu, 2014
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SAARC ACHIEVEMENTS
A Free Trade Agreement confined to goods, but excluding all services like
information technology. Agreement was signed to reduce customs duties
of all traded goods to zero by the year 2016.
South Asia Preferential Trading Agreement for promoting trade amongst
the member countries came into effect in 1995.
SAARC visa exemption decided that certain categories of dignitaries
should be entitled to a Special Travel document, which would exempt
them from visas within the region.
Greater cultural co-operation
It has provided forum for bilateral and regional agreements to the small
poor nations for collaboration among themselves for development.
SAARC AND CHINA

China currently observer state of SAARC wants to join as a member of SAARC
for number of reasons
China is the development stakes in almost all states in the SAARC. It has
been involved in several construction and infrastructure projects in these
countries under its foreign policy named as pearl of string.

China shares a special relationship with Pakistan which will find
comfortable to deal with India if china sits with Pakistan.
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Regional stability can bring prosperity. It will facilitate the trade which will
boost Chinese manufacturing industry.

It would have significant advantages for exports. If SAFTA came into being
china will get benefits from it.
DISADVANTAGES OF MEMBERSHIP OF CHINA
China might use its economic power to dominate the small nations. Small
nations might become raw material suppliers only importing
manufactured goods from China.
China will join hands with Pakistan which is already having obstructionist
policies so overall efforts for regional co-operation will become fruitless.
China does not categorized in south Asia geogrphically.It does not share
historical or cultural connection, other countries as all other members
shared
China might veto important proposals relating to South Asian

development.
ADVANTAGES OF MEMBERSHIP OF CHINA
The SAARC is dominated by India. China's inclusion will balance the group.
Though all countries have relationship with China Bhutan can develop
relationship with China
Transit route through Nepal will facilitate trade in region. The Lhasa-NaquGolmud railway would help in this venture.
BARRIERS TOWARDS TRADE AMONG SAARC BARRIERS
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It means that any policy or regulation that restricts international trade. These
may be embargos, import duties, import licenses etc. These barriers are the
cause of low trade among SAARC states.
Hinge Barriers on Security and Democracy In order to promote regional
cooperation India bind the neighboring states in ties of different networks
through the project of SAARC. India shares ethnic, language, cultural and
religious histories. Harshe (2005) mentioned that India refused to attend the
13th summit of SAARC and the reason was shaped by two main factors. First,
recently events occurred in Bangladesh such as attack on Sheikh Hasina, the
deaths of Bilal-ud-din, a journalist and former finance minister Shah A.Kibria
in two separate bomb blasts. Second, through suspension of the democratic
and constitutional processes King Gyanendras seizures of power in Nepal
also promoted India to refrain from sharing the platform with the Gyanendra
regime.
Spillover Effects of Crisis in Nepal The political system of Nepal is internally
challenged by Maoists. Maoists have been trying but have not merely
established their control over 40% of territory of Nepal, The Deuba regime
failed to improve the law and order situation and tackle the Maoist rebels
which in return gave King Gyanendra a pretext to take over the
administration in Nepal. Nepal strategic location has high value for major
powers. Since Nepal borders China and India, the dominant forces in Nepal
therefore can prove crucial to either of these powers. Nepalis frontier is only
185 miles away from New Delhi. That is why Indias stability and friendship
with Nepal is essential to strengthen its security.
Inadequate Security Environment Two vast areas of illicit opium production
namely Golden crescent and Golden Triangle constitute problems to health
security. The threat of terrorism also constitutes challenges to development
cooperation from two leading countries Sri Lanka and Pakistan. A momentary
semblance of peace in the sub-continent has been established with the
Page 12 of 45
ongoing talks to promote peace by Indo-Pakistan and the assurance of

preventing any terrorist operation from its soil by President of Pakistan.
Similarly, peace seems to escape Sri Lanka in spite of the three-year-old
Oslo-initiated reconciliatory process between the Liberation Tigers of Tamil
Eelam (LTTE) and government of Sri Lanka. The formation of joint mechanism
comprising of the LTTE and the government to disburse funds in the tsunamiaffected areas has been held as LTTE wants to monopolize post tsunami
reclamation work in the northeast. It is easy to assuage the impact of
terrorism by promoting dialogic processes in inter and intra-state civil
societies within the SAARC countries. The success of SAARC is based upon
the economic and commercial bonds among the SAARC member states.
Indo-Pak Cooperation If both India and Pakistan focus on the economic
aspects of their ties, the strain between both the countries may be
mitigated. When the nuclear test was conducted in 1998 the trade among
Indo-Pak peaked to $345 million. The highest Indian Exports to Pakistan was
during the government of Musharraf (Taneja, 2004). India awarded the title of
Most Favorite Nation (MFN) to Pakistan as a trading partner. India can export
different kinds of minerals like iron ore, steel etc, and transport equipments
like motorcycles, scooters and passenger cars etc. Moreover it can also
export textile and number of agricultural products. Whereas, Pakistan
contributes in the exports like fruits, spices, pulses, nuts etc to India. India is
more powerful and strong in its economic conditions as compared to
economy of Pakistan. Energy sector cannot be ignored to promote IndoPak
Cooperation.
Two Sided Conflicts and Tensions Prevailing among Countries. These are such
conflicts that are between the member states or the neighboring states that
may be due to the conflict in the laws and regulations that vary across the
boundaries of the member states. These are the prudential regulations of
each member state, such conflicts causes hindrance in the easy import and
export of the trade essentials among the SAARC countries. Such conflicts can
Page 13 of 45
be handled by the mutual agreements among the SAARC member states.

That will be beneficial for both of the bilaterally conflicting states. Centre
for Promoting Ideas, USA www.ijbssnet.com 122
India and Pakistan are the two prominent countries existing in the region,
India and Pakistan are commonly known as traditional rivals, since 1947. The
most important conflict is the Kashmirs issue. Pakistan, as a Muslim country,
supports Kashmirs freedom slogan and this is the main reason why India
opposes Pakistan strongly. The bitter relations between the countries were
mounting day by day. Lack of trust between these two countries leads to low
exports and imports. Trade relations are so weak. India supposes Pakistan as
a terrorists country for no reason. Wars of 1965, 1971 and Kargil war were
broke between Pakistan and India. The conflicts between these two countries
are still unsolved. Governments at both sides are trying to solve the
problems and to improve trade relations for this purpose. Many policies are
made but it is hard to implement these policies until the most important
factor trust will remain absent. Struggles should be made by the higher
authorities to create a trustworthy relationship between these two countries.
India and Sri Lanka System relating to caste-inferiority of mankind was
very common in Srilanka in 1980s.India made many efforts to resolve this
conflict in 1983.Indian government started to compassionate a specific class
in Srilanka (Tamils) that raised many conflicts between these two countries.
India was in favor of Tamils. India sent IPKF (Indian peace keeping force) in
Srilanka to support Tamils that was displeasing for Srilanka and thus,
Srilankans demanded for the termination of IPKF. In 1990, India started to
help Srilankan government as a whole without keeping in view the specific
class. The negative thinking of Srilankans about Indians was reduced to some
extent and they started cooperation with each other.
India and Bangladesh When Pakistan was established, India started
supporting the East Pakistan (now Bangladesh).There are many conflicts
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exist between India and Bangladesh. Disputes were arisen on Farrakka

barrage, on river island of Mahurichar, on building fence on the international
border by India. All these issues are still unsolved. India opposed Bangladesh
of being compassionate to Pakistan whereas Bangladesh blamed India for
helping its specific states rebels.
India and Nepal There were bitter relationships between India and Nepal.
Many of the conflicts were not resolved. There relations were so unfriendly
when SAARC was constituted. Indian government opposed Nepals step
towards gaining atomic energy i.e. weapons from China. Indian government
was afraid that if Nepal did so then it will lose its hold from Katmandu. The
dispute between India and Nepal was very prominent but it had no affect on
Indo Nepal relations. India supported Nepal when its political and economic
condition was declining. Thus the relations between these two countries were
made strong by their governments. (Khan et al., 2007)
Political Issues Relating to SAARC SAARC does not interfere in the internal
affairs of its member countries. It paid attention towards the major issues. In
its 12th and 13th meeting, discussions were made for the better
relationships of all SAARC countries. In a nutshell, SAARC is responsible for
establishing strong trade relationships among its countries. Many conflicts
are therefore exists among them on several issues. The higher authorities
are trying to solve these problems and work for their better prospects.
Facilitations to Trade among SAARC As there are a lot of obstacles in trade,
that creates hindrance in the ways to imports and exports across the
regional boundaries. Similarly, there are various ways to facilitate the trade
across the member states, these facilitations may be provided by the
governmental regulations or by the management of the SAARC. These
facilitations help to promote as well as try to remove the obstacles in the
way to trade among the SAARC member states. Promotion of trade under
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various prospects includes: political measures, competitive measures, trade

integration.
Political and Economic Measures Combined efforts of Pakistan and India
facilitate trade by solving political and economic issues. Their combined
efforts improve trade by eliminating visa problems, tariff and nontariff
obstacles, by exploring various other routes of trades and by developing
relations among financial institutions. These efforts also help their nationals
in performing their religious norms by clearing the path between Lahore and
Amritsar where Nankana sahib is located (one of the religious leader of Sikh
population all over the world).By the collaboration of Pakistan and India the
amusement among both the countries is also enhanced by the permission of
Indian films show in Pakistan cinemas
ASSOCIATION OF SOUTHEAST ASIAN

The Association of Southeast Asian Nations is a political and economic
organization of ten Southeast Asian countries. It was formed on 8 August
1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Since
then, membership has expanded to include Brunei, Cambodia, Laos,
Myanmar (Burma), and Vietnam. Its aims include accelerating economic
growth, social progress, and sociocultural evolution among its members,
protection of regional peace and stability, and opportunities for member
countries to resolve differences peacefully.
Page 16 of 45
ASEAN covers a land area of 4.4 million square kilometers, 3% of the total
land area of the Earth. ASEAN territorial waters cover an area about three
times larger than its land counterpart. The member countries have a
combined population of approximately 625 million people, 8.8% of the
world's population. In 2015, the organization's combined nominal GDP had
grown to more than US$2.6 trillion. If ASEAN were a single entity, it would
rank as the seventh largest economy in the world, behind the US, China,
Japan, Germany, France and the United Kingdom.
In their relations with one another, the ASEAN Member States have adopted
the following fundamental principles, as contained in the Treaty of Amity and
Cooperation in Southeast Asia (TAC) of 1976:
Non-interference in the internal affairs of one another Settlement of
differences or disputes by peaceful manner;
Renunciation of the threat or use of force; and Effective cooperation among
themselves.
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ASEAN EMBLEM
Guidelines on the Use of the ASEAN Emblem
The ASEAN Emblem shall be the official emblem of ASEAN.
The ASEAN Emblem represents a stable, peaceful, united and dynamic

ASEAN. The colours of the Emblem -- blue, red, white and yellow -represent the main colours of the state crests of all the ASEAN Member
States.
The blue represents peace and stability. Red depicts courage and
dynamism, white shows purity and yellow symbolises prosperity.
The stalks of padi in the centre of the Emblem represent the dream of
ASEAN's Founding Fathers for an ASEAN comprising all the countries in
Southeast Asia, bound together in friendship and solidarity.
The circle represents the unity of ASEAN.
The ASEAN Emblem is the reserved copyright of ASEAN.
Use of the ASEAN Emblem
The ASEAN Emblem shall be used in a manner that promotes ASEAN

and its purposes and principles. It shall not be used for political
purposes or for activities that harm the dignity of ASEAN.

The ASEAN Emblem shall not be used for commercial purposes unless
the entities concerned obtain official approval through the procedures
stipulated in Article A.4.
ASEAN COMMUNITY
The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th
Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of
Southeast Asian nations, outward looking, living in peace, stability and
Page 18 of 45
prosperity, bonded together in partnership in dynamic development and in a

community of caring societies.
At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an
ASEAN Community shall be established.
At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong
commitment to accelerate the establishment of an ASEAN Community by
2015 and signed the Cebu Declaration on the Acceleration of the
Establishment of an ASEAN Community by 2015.
The ASEAN Community is comprised of three pillars, namely the ASEAN
Political-Security Community, ASEAN Economic Community and ASEAN SocioCultural Community. Each pillar has its own Blueprint, and, together with the
Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan
Phase II (2009-2015), they form the Roadmap for an ASEAN Community
2009-2015.
ASEAN may engage with entities which support the ASEAN Charter, in
particular its purposes and principles.
Parliamentarians
ASEAN Inter-Parliamentary Assembly (AIPA)
Think Tanks and Academic Institution
ASEAN-ISIS Network
ASEAN Institute for Peace and Reconciliation (AIPR)
Accredited Civil Society Organizations (CSOs)
List of ASEAN-Accredited Civil Society Organization (as of 11 May 2015)
Other Stakeholders
Page 19 of 45
ASEAN Supreme Audit Institutions (ASEANSAI)

Federation of Institutes of Food Science and Technology in ASEAN (FIFSTA)
Southeast Asian Fisheries Development Centre (SEAFDEC)
Working Group for an ASEAN Human Rights Mechanism
EXTERNAL RELATIONS WITH OTHER COUNTRIES

ASEAN maintains its external relations with other countries which are not a
part of its organization with countries namely Australia, Canada, China,
European Union, India, Japan, ROK, New Zealand, Russia, United States
UNDP, Pakistan.
ASEAN-INDIA DIALOGUE RELATIONS

ASEAN-India dialogue relations have grown rapidly from a sectoral dialogue
partnership in 1992 to a full dialogue partnership in December 1995. The
relationship was further elevated with the convening of the ASEAN-India
Summit in 2002 in Phnom Penh, Cambodia. Since then the ASEAN-India
Summit has been held annually. All these took place in a decade, which
clearly signifies the importance of the dialogue partnership to ASEAN and
India and the progress made in the cooperation.
At the ASEAN-India
Commemorative Summit held on 20 December 2012 in New Delhi, India, the

Leaders adopted the ASEAN-India Vision Statement and declared that the
ASEAN-India Partnership stands elevated to a Strategic Partnership.
Political and Security Cooperation
Since India became a Dialogue Partner of ASEAN, the collaboration has
transcended the realm of functional cooperation to cover political and
security dimensions. India participates in a series of consultative meetings
with ASEAN under the ASEAN-India Dialogue Relations, which include
Page 20 of 45
Summit, ministerial meetings, senior officials meetings, and meetings at

experts level, as well as through dialogue and cooperation frameworks
initiated by ASEAN, such as the ASEAN Regional Forum (ARF), the Post
Ministerial Conference (PMC) 10+1, the East Asia Summit (EAS),MekongGanga Cooperation and Bengal Initiative for Multi-sectoral Technical and
Economic Cooperation (BIMSTEC), which help contribute to enhancing
regional dialogue and accelerating regional integration.
As a reflection of the interest of ASEAN and India to intensify their
engagement, the ASEAN-India Partnership for Peace, Progress and Shared
Prosperity,
which
sets
out
the
roadmap
for
long-term
ASEAN-India
engagement, was signed at the 3rd ASEAN-India Summit on 30 November

2004 in Vientiane, Lao PDR. A Plan of Action (2004-2010) was also developed
to implement the Partnership. The 7th ASEAN-India Summit held in October
2009 also noted with satisfaction the steady progress of implementation of
the ASEANIndia Partnership for Peace, Progress and Shared Prosperity. The
Summit also agreed on a new and more enhanced phase of the Plan of
Action to implement the said Partnership in order to seize the opportunities
and overcome the challenges arising from the global financial crisis and
evolving political and economic landscape. Subsequently, the new ASEANIndia Plan of Action for 2010-2015 was developed and adopted by the
Leaders at the 8th ASEAN-India Summit in October 2010.
Following the entry into force of the ASEAN Charter, and based on the strong
foundation of the ASEAN-India Dialogue Relations, India has accredited its
Ambassador to ASEAN based in Jakarta, particularly to work closely with the
Committee of Permanent Representatives to ASEAN (CPR) and the ASEAN
Secretariat. At the 10th ASEAN-India Summit on 9 October 2012 in Bandar
Seri Begawan, India announced its intention to establish a separate
Diplomatic Mission to ASEAN with a Resident Ambassador as an illustration of
the intensification of the ASEAN-India Strategic Partnership.
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ASEAN and India marked the 20th anniversary of their Dialogue Relations in
2012 with a Commemorative Summit held in India on 20 December 2012. A
number of commemorative activities were carried out to signify the
expanding and deepening of the Dialogue Partnership.
In this connection, the ASEAN-India Eminent Persons group (EPG) was
established to take stock of ASEAN-India relations over the past 20 years,
explore ways to widen and deepen existing cooperation between ASEAN and
India, as well as recommend measures to further strengthen ASEAN-India
relations
in
the
future,
taking
into
account
existing
documents
signed/adopted by both sides, as well as key ASEAN documents, particularly

the ASEAN Charter, Roadmap for an ASEAN Community, the three Blueprints
of the ASEAN Community and other relevant documents. The Report of the
AIEPG was submitted to the 10th ASEAN-India Summit in November 2012 in
Phnom Penh, Cambodia. In this regard, the Leaders tasked the Ministers to
consider the report thoroughly and to implement the key recommendations
where appropriate.
ASEAN SUMMIT
Twenty sixth ASEAN Summit, Kuala Lumpur & Langkawi, Malaysia, 2628 April 2015.
Twenty fifth ASEAN Summit, Nay Pyi Taw, Myanmar, 11-13 November
2014
Twenty fourth ASEAN Summit, Nay Pyi Taw, Myanmar, 10-11 May 2014
Twenty third ASEAN Summit, Bandar Seri Begawan, Brunei Darussalam,

9-10 October 2013
Twenty
second
ASEAN
Summit,
Bandar
Seri
Begawan,
Brunei
Darussalam, 24-25 April 2013
Twenty first ASEAN Summit, Phnom Penh, Cambodia, 18 November

2012
Twentieth ASEAN Summit, Phnom Penh, Cambodia, 03-04 April 2012

Page 22 of 45
Nineteenth ASEAN Summit, Bali, Indonesia, 14-19 November 2011
Eighteenth ASEAN Summit, Jakarta, 7-8 May 2011
Seventeenth ASEAN Summit, Ha Noi, 28-30 October 2010
Sixteenth ASEAN Summit, Ha Noi, 8-9 April 2010
Fifteenth ASEAN Summit, Cha-Am Hua Hin, Thailand, 23-25 October

2009
Fourteenth ASEAN Summit, Cha-am, Thailand, 26 February - 1 March

2009
Thirteenth ASEAN Summit, Singapore, 18-22 November 2007
Twelfth ASEAN Summit, Cebu, Philippines, 9-15 January 2007
Eleventh ASEAN Summit, Kuala Lumpur, 12-14 December 2005
Tenth ASEAN Summit, Vientiane, 29-30 November 2004
Ninth ASEAN Summit, Bali, 7-8 October 2003
Eighth ASEAN Summit, Phnom Penh, 4-5 November 2002
Seventh ASEAN Summit, Bandar Seri Begawan, 5-6 November 2001
Fourth Informal Summit, Singapore, 22-25 November 2000
Third Informal Summit, Manila, 27-28 November 1999
Sixth ASEAN Summit, Ha Noi, 15-16 December 1998
Second Informal Summit, Kuala Lumpur, 14-16 December 1997
First Informal Summit, Jakarta, 30 November 1996
Fifth ASEAN Summit, Bangkok, 14-15 December 1995
Fourth ASEAN Summit, Singapore, 27-29 January 1992
Third ASEAN Summit, Manila, 14-15 December 1987
Second ASEAN Summit, Kuala Lumpur, 4-5 August 1977
First ASEAN Summit, Bali, 23-24 February 1976
Page 23 of 45
STRATEGIC
IMPORTANCE
OF
ASEAN
FOR INDIA
Volume
of
trade and investment flows between ASEAN and India remained relatively
low compared with other dialogue partners of ASEAN. Between 1993 and
2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$
2.9 billion in 1993 to US$ 12.1 billion in 2003.
The total trade between ASEAN and India decreased by 5.4 per cent, from
US$71.8 billion in 2012 US$67.9 billion in 2013. At the 10th ASEAN-India
Summit in November 2012, the Leaders set the target ofUS$100 billion by
2015 for ASEAN-India trade. Foreign direct investments (FDI) from India fell
by 41 per cent from US$2.2 billion in 2012 to a little more than US$1.3 billion
in 2013, while previous year rebounded from negative US$ 1.7 billion.
Acknowledging this trend and recognizing the economic potential of closer
linkages, both sides recognized the opportunities for deepening trade and
investments, and agreed to negotiate a framework agreement to pave the
way for the establishment of an ASEAN-India Free Trade Area.
At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India
Framework Agreement on Comprehensive Economic Cooperation. The
Page 24 of 45
Framework Agreement laid a sound basis for the establishment of an ASEANIndia Free Trade Area (FTA), which includes FTA in goods, services and
investment.
ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in
Bangkok on 13 August 2009 after six years of negotiations. The signing of
the ASEAN-India Trade in Goods Agreement paves the way for the creation of
one of the worlds largest free trade areas (FTA) - market of almost 1.8 billion
people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see
tariff liberalization of over 90% of products traded between the two dynamic
regions. Tariffs on over 4,000 product lines will be eliminated by 2016, at the
earliest. The ASEAN-India TIG Agreement entered into force on 1 January
2010.
During the 10th ASEAN-India Summit in November 2012, the ASEAN-India
Leaders tasked their economic ministers to step up their efforts and flexibility
to conclude the ASEAN-India Trade in Services and Investment Agreement at
the earliest. Subsequently, an announcement on the conclusion of the
negotiations on both Agreements on ASEAN-India Trade in Services and
Investment was made at the ASEAN-India Commemorative Summit on 20
December 2012. By January 2015, the Agreement has been signed by all
ASEAN Member States and India. The Agreement will enter into force in July
2015.
ASEAN and India are also working on enhancing private sector engagement,
including the re-activation of the ASEAN-India Business Council (AIBC), the
holding of the first ASEAN-India Business Summit (AIBS) and an ASEAN-India
Business Fair and Conclave (AIBFC) held in New Delhi on 2-6 March 2011 with
participation of an estimated 500 trade exhibitors, business leaders,
practitioners and entrepreneurs from ASEAN and India to showcase their
products and services. The 2nd AIBF was held at the sidelines of the ASEANPage 25 of 45
India Commemorative Summit, in New Delhi on 18-20 December 2012. The

events were part of the efforts to stimulate trade and business-to-business
interaction.
The 14th ASEAN Transport Ministers (ATM) Meeting on 6 November 2008 in
Makati,
Metro
Manila,
Philippines
adopted
the
ASEAN-India
Aviation
Cooperation Framework, which will lay the foundation for closer aviation
cooperation between ASEAN and India. In 2012, India participated for the
first time in the 21st ASEAN Land Transport Working Group (LTWG) Meeting.
During the Meeting, India presented her initiatives for enhanced cooperation
on ASEAN Action Plan, covering various sectors such as land transport,
maritime transport, border management, customs, immigration, logistics and
safety and Public Private Partnership (PPP).
The IndiaMyanmarThailand Trilateral Highway Project and its extension to
Laos and Cambodiais one of current proposed projects to achieve greater
ASEAN-India physical connectivity. The project is planned to connect the
ASEAN Highway Network with the highway system in eastern India.
Further on connectivity, the 10th ASEAN-India Summit welcomed the
establishment
encouraged
of
Indias
regular
Inter-Ministerial
exchanges
between
Group
the
on
Group
Connectivity
and
the
and
ASEAN
Connectivity Coordinating Committee (ACCC) to explore concrete ways and

means to support the MPAC, in particular in areas where India has strong
expertise and interest. The 1st ASEAN-India ACCC Meeting was held in
Balikpapan, Indonesia. The Meeting served in providing a format for
expeditious exchange of information to facilitate decision making on broad
project proposals and ideas mentioned in the numerous studies on ASEANIndia Connectivity.
Page 26 of 45
Significant developments can also be seen in the cooperation in the

agriculture and forestry sector as ASEAN and India have successfully held the
first and second ASEAN-India Ministerial Meeting on Agriculture and Forestry
on 8 October 2011 in Jakarta, Indonesia and on 17 October 2012 in New
Delhi, India, respectively. The Ministers adopted the Medium Term Plan of
Action for ASEAN-India Cooperation in Agriculture (2011-2015) with the view
to promoting and intensifying cooperation in the agriculture and forestry
sector between ASEAN and India, in order to meet the challenges of food
security, to exchange information and technology, to cooperate on research
and development projects, to encourage agriculture and forestry-related
industries, and to strengthen human resources development. A number of
cooperative activities in this areas have been carried out, most notably the
ASEAN-India Agri-Expo and the Symposium onIndo-ASEAN Export Potential of
Agriculture Products that were organised on 17 19 October 2012 and 18
October 2012, respectively, in New Delhi; publication of the regular edition of
the ASEAN-India Newsletter on Agriculture and Forestry since 2012; ASEANIndia Farmers Exchange Program; and the Conference of Heads of Agriculture
Universities and Research Institutions of India and ASEAN organised on 18-21
February 2013 in New Delhi.
MAJOR ACHIEVEMENTS
Page 27 of 45
FOOD
Acknowledging the important of food security to keep the stability, and

prosperity of the region, the ASEAN Member States signed the Agreement on
ASEAN Food Security Reserve (AFSRB) in 1979. Under the Agreement, each
ASEAN Member State should establish an ASEAN Emergency Rice Reserve
(AERR), a sum total of the basic food stock (rice)
maintained by each
Member Country within its national border. Presently, the total earmarked
quantity for the AERR stands at 87,000 metric tons.
Two projects related to food security are being implemented under the
AMAF+3 mechanism, namely: East Asia Emergency Rice Reserve (EAERR)
and the ASEAN Food Security Information System (AFSIS).
In response to the recent developments of soaring food prices, global

financial crisis and an increasing concern on food security in the ASEAN
region, the Thirtieth (30th) Meeting of AMAF held in Hanoi on 23 October
2008 endorsed the ASEAN Integrated Food Security (AIFS) Framework and
Strategic Plan of Action on ASEAN Food Security (SPA-FS) with the main goal
of ensuring long-term food security and to improve the livelihoods of farmers
in the ASEAN region.
The 14th ASEAN Summit, held on 26 February 1
March 2009 in Cha-am, Thailand had adopted the AIFS Framework and SPAFS and issued a Statement of which the Leaders pledge to embrace food
security as a matter of permanent and high priority policy and to encourage
partnership with concerned institutions and agencies, dialogue partners and
international organisations to pursue this important endeavour.
Food handling
Page 28 of 45
ASEAN established the ASEAN General Guidelines on the Preparation and

Handling of Halal Food in the view to further expand intra-ASEAN trade in
meat and meat-based products. The Guidelines was prepared based on and
in line with the Association of Religious Ministers of Brunei Darussalam,
Indonesia, Malaysia and Singapore (MABIMS) Guidelines for Preparation of
Food and Drink for Muslims and Codex General Guidelines for Use of the
Term Halal.
The Guidelines serves as a practical reference for food
industry in the production and handling of halal food for more effective
presence in the regional and international market.
Food Safety
ASEAN has developed the ASEAN Food Safety Network website

(www.aseanfoodsafetynetwork.net) to provide useful information on food
safety, such as SPS measures of various countries, issues in the international
standards setting bodies (Codex, OIE, IPPC, etc.) as well as the works of
various ASEAN bodies related to food safety.
AGRICULTURE
Increasing of consumers awareness on food safety has prompted ASEAN to

give strong attention on the use of agrochemical that resulted residues on
treated agricultural produces. Works have been done to harmonies maximum
residual levels (MRLs) of pesticides in agricultural products that are traded in
the region. To date, AMAF has adopted a total of 802 ASEAN harmonized
MRLs for 63 pesticides.
Page 29 of 45
Another step forward in the regional effort to control pesticide use to improve
marketability of agricultural products and prevent environmental degradation
is the establishment of pesticide database and network among ASEAN
Member States. Through the coordination of Malaysia, the ASEAN website
for pesticides regulatory authorities aseanpest
(http://agrolink.moa.my/doa/aseanpest) provides a platform for sharing of

information and databases as well as to allow for discussion, identification,
prioritization, implementation and resolution of problems related to pesticide
management. The website contains information and databases partly
available to the general public, as well as some classified information and
data accessible only to the regulatory authorities of ASEAN Member States.
With the objective to eliminate NTBs in the form of phytosanitary measures

affecting ASEAN trade, the ASEAN Member Countries have finalized endemic
pest
list
for
dendrobium
rice-milled,
orchids
citrus-fruit,
cut-flowers.
mango-fruit,
Further
works
on
potato-tuber,
harmonization
and
of
phytosanitary measures will be focused on the development of guidelines for

harmonizing import procedures for the said commodities. AMAF during its
30th Meeting had adopted the ASEAN Phytosanitary (PS) Guidelines for the
Importation of Rice-Milled.
ASEAN committed to enhance its international competitiveness of food and

agriculture products to enable the region to be the leading producer of these
products. A number of efforts have been undertaken in order to realise the
Vision, including the enhancement of food control systems and procedures to
Page 30 of 45
assure the freer movement of safe, healthy and quality food within the
region.
The ASEAN Good Agricultural Practices (ASEAN-GAP) for fresh Fruit and
Vegetables has been developed and adopted as a standard for the
production, harvesting and post-harvest handling of fruits and vegetables in
the region. ASEAN had also developed the ASEAN Standards for Mango,
Pineapple, Durian, Papaya, Pumelo, Rambutan, Mandarin, Lansium, Guava,
Mangosteen and Watermelon to ensure that these commodities are available
fresh to the consumers after preparation and packaging.
LIVE STOCK
The main barriers to develop the livestock industry in the region are the
presence of infectious diseases in animals. Several animal diseases still
afflict in some ASEAN Member Countries resulting on the economic loss. The
diseases include: FMD, Classical Swine Fever, Newcastle Disease, and Avian
Influenza. Recognizing that vaccination is the practical method to control the
spread of these infectious diseases, ASEAN embarked on establishing
standards for vaccines used in the livestock industry in the region to ensure
that only vaccines which meet international standards for safety, efficacy,
and quality are being used to protect animal health in the region. ASEAN also
established several procedures and guidance related to vaccines productions
which are published for the purpose of livestock industry in the region.
The resurgent outbreaks of Highly Pathogenic Avian Influenza (HPAI) remains

a serious threat to the region and have drawn great attention of Member
States to work closely and enhance their cooperation in strengthening animal
Page 31 of 45
diseases control programme, with priority diseases covered not just HPAI, but
also included Foot and Mouth Disease (FMD), and Classical Swine Fever
(CSF). Taking into consideration the various existing initiatives and activities
as undertaken by Member States and several donor agencies in the attempt
to control and eradicate transboundary animal diseased (TADs) in the region,
the AMAF recognises the need for a well-coordinated multi-agency and multisectoral approach among Member States as well as with the various
partners, to ensure complementary efforts in current and planned activities.
Another effort to show ASEAN strong commitment and ownership in the
regional disease control programme in the region is the establishment of the
ASEAN Animal Health Trust Fund (AHTF).
The ASEAN contribution for
establishment of the ASEAN Animal Health Trust Fund (AAHTF) become an

important signal to donor communities of ASEANs intention to facilitate and
support long-term sustainability of animal disease control in the region. The
Agreement for the Establishment of ASEAN Animal Health Trust Fund was
signed by the AMAF in November 2006.
In order to promote international trade in livestock, especially among the
Member Countries, a number of ASEAN Criteria for Accreditation of Livestock
and Livestock Products Establishment have been developed.
A number of cooperative projects and activities in fisheries have been

implemented among others, Development of Aquaculture, ASEAN Network of
Fisheries Post Harvest Technology (FPHT), Harmonisation of Fishery Sanitary
and
Phytosanitary
(SPS)
Measures,
ASEAN-SEAFDEC
Collaboration
on
Sustainable Fisheries Management in the Southeast Asia Region, and

fisheries
related
projects
under
the
ASEAN
Australia
Development
Cooperation Programme (AADCP)
Page 32 of 45
To promote sustainable aquaculture, ASEAN developed the Manual on Good

Shrimp Farm Management Practices, Harmonization of Hatchery Production
of Penaeus monodon (tiger prawn) in ASEAN, and Manual on Practical
Guidelines for the Development of High-health Penaeus monodon Broodstoc.
These manual had been translated into national language in some Member
States for easier reference for the fish farmers. ASEAN has also developed
Guidelines on Development of Standard Operating Procedures (SOPs) for
Health Certification and Quarantine Measures for the Responsible Movement
of Live Food Finfish as a tool to reduce risks of fish diseases due to transboundary
movement
of
live
aquatic
animals
in
the
region.
As part of the ASEAN efforts to promote regional and international trade of

fish products through the implementation of HACCP, the Hazards Guide - A
Guide to the Identification and Control of Food Safety Hazards in the
Production of Fish and Fisheries Products in the ASEAN Region has been
compiled to act as reference and provide detailed guidance to regulators,
SMEs and other interested parties on fish and fish products related hazards,
hazards control and food safety progammes.
Collaboration between ASEAN and SEAFDEC for sustainable Fisheries
development in Southeast Asia has been undertaken since 1998. A number
of fisheries projects have been implemented throughout the years. To further
enhance closer collaboration between the two organizations, ASEAN and
SEAFDEC agreed to strengthen the implementation of regional fisheries
programmes and mechanism by establishing the ASEAN-SEAFDEC Strategic
Partnership (ASSP). Toward this end, a Letter of Understanding (LOU) on the
ASSP has been signed by the Secretary General of ASEAN and Secretary
General of SEAFDEC in November 2007.
ASEAN is implementing strategic alliances (SA) projects in the following

enterprises: data and information, agricultural production and marketing,
Page 33 of 45
coconut-by-product,
agro-ecotourism,
beef
farming,
carrageenan,
and
marketing beans and pulses. Among these projects, the SA Project on Beef
Farming has made significant progress with the signing of a MOU between
Johor State Farmers Organisation and Krida Satwa Cooperative of Indonesia
for trading of goats of Ettawa (Jafnapari).
The ASEAN Cooperative Business Forum (ACBF) was established in 2006 with
the objective to promote business linkages and trading among the potential
agricultural cooperatives within ASEAN Member States, and to empower
farmers, farmers groups and farmers organizations.
The ability of farmers to select, adapt and apply technologies plays a vital
role in increasing agricultural production. ASEAN, in its efforts to educate
their farmers has promoted and intensified the application of Integrated Pest
Management (IPM), especially on fruits and vegetables as a comprehensive
approach to improve crop quality and reduce crops losses. Development of
training modules and regional trainings in Integrated Pest Management (IPM)
in fruits and vegetables for agricultural extension officers are carried out by
the ASEAN Member States. Under the title Think IPM and Take Action, basic
information about the Integrated Pest Management (IPM) was published to
assist
extension
workers
build-up
and
strengthen
their
common
understanding, which is essential in their working to help the farmers.

ASEAN had also produced IPM training modules for durian, vegetable
(cabbage & potato), rice, shallots, corn, mango, pamelo, and soybean.
In order to help national governments and non-governments organization in

ASEAN to improve the effectiveness of the implementation of their national
IPM programme, ASEAN established the ASEAN IPM Knowledge Network
Page 34 of 45
(http://ASEAN-IPM.searca.org). The IPM Knowledge Network is an initiative to

accumulate the vast collection of knowledge capital on IPM that can be
reused and shared by national IPM programmes in the ASEAN region. To do
this, the ASEAN IPM established an electronic IPM Knowledge Management
Facility, which ensures that IPM Knowledge is available at the point of need of
programme implementers and policy makers. The ASEAN IPM Centre in the
Philippines acts as the Database and Network Administrator. The Knowledge
Hubs located in each ASEAN Member States are established and linked to the
ASEAN IPM Centre.
Cooperation in the area of research and development in agriculture was

started in 2005. A number of activities have been initiated including the
establishment of the ASEAN Agricultural Research and Development
Information System (ASEAN ARDIS), development of the ASEAN Directory of
Agricultural Research and Development Centres
in ASEAN, and the
Guidelines for the Use of the Digital Information System.
ASEAN acknowledged the importance of the agricultural biotechnology as a

tool to increase food productivity on a sustainable basis. However, at the
moment, there is public concern on the use of biotechnology that need to be
addressed by the respective authorities. ASEAN adopted the Guidelines on
the Risk Assessment of Agriculture-related Genetically Modified Organisms
(GMOs). The Guidelines serve to provide ASEAN Member States with a
common understanding and approach when conducting scientific evaluations
for the release of agriculture-related GMOs.
To enhance and strengthen the capacity building, ASEAN, in collaboration
with the International Life Sciences Institute (ILSI) Southeast Asia has
Page 35 of 45
organized a series of training workshops on the use of the ASEAN Guidelines

on Risk-Assessment of Agriculture-related GMOs for the regulators and
decision makers. Three training workshops on Safety and Risk Assessment of
Agriculture-related Genetically Modified Organisms (GMOs) were organized in
Singapore (2001), Kuala Lumpur (2002), Bangkok (2003), and Jakarta
(2004).
To develop the important aspects of regulating GMO, ASEAN is implementing

initiative on ASEAN Genetically Modified Food Testing Network. The Initiative
is to
assist ASEAN Member States to better utilise
existing national
resources on genetic modification and food safety, as well as gain better

access to information on developing GM testing capabilities for food.
Agriculture and Forest Products Promotion
To promote trade in agriculture and forest products, ASEAN extended the

implementation of the Memorandum of Understanding (MOU) on ASEAN
Cooperation in Agriculture and Forest Products Promotion Scheme for the
another five years, viz. 2004 to 2009. The MOU is used as a basis to pursue
cooperation with the private sector and to coordinate joint positions on
issues related to trade in ASEAN agriculture and forest products. The new
MOU is now under consideration by the ASEAN Member States which will
cover the following 11 products, Carrageenan and other Seaweeds, Cocoa,
Coconut, Coffee, Forest Products (Timber and Non-Timber), Palm Oil, Peas
and Beans, Pepper, Tapioca, Tea, and Tuna.
Page 36 of 45
FORESTRY
Forest is a very important natural resource for the ASEAN region in terms of
economical, environmental and socio-cultural benefits. The increase forest
production, both in terms of quantity and quality, and increase exports using
methods that are economically and environmentally sustainable are still
challenges in ASEAN. ASEAN cooperation in forestry involves working with
Dialogue Partners, international organizations and third-parties such as
Australia, Germany, Sweden, and FAO have been undertaken to address
priority issues in the region.
The promotion of sustainable forest management (SFM) is of the utmost

interest and priority to ASEAN Member States. This has led to the formulation
of guidelines where it can be used as references for Member States in
developing their respective country-specific national criteria and indicators
for sustainable forest management. In compliance with the international
forestry reporting requirements on progress towards the achievement of
sustainable forest management at the national and regional levels, the 29th
AMAF Meeting on 1 November 2007 in Bangkok endorsed the followings: i)
ASEAN Criteria and Indicators for Sustainable Management of Tropical
Forests; ii) Monitoring, Assessment and Reporting Format for Sustainable
Forest
Management
in
ASEAN;
and
iii)
ASEAN
Guideline
for
the
Implementation of IPF/IFF proposals for Action. Another reference used as a

guide is the FAO Code of Practice for Forest Harvesting in Asia Pacific, which
has been adopted by ASEAN to develop specific national codes and / or
guidelines. The Ministers also declared the Ministerial Statement on
Strengthening Forest Law Enforcement and Governance (FLEG) in ASEAN in
view of reaffirming ASEANs commitment in combating illegal logging and its
associated trade.
Page 37 of 45
Under the ASEAN German Regional Forest Programme (ReFOP), the ASEAN
Forest Clearing House Mechanism (CHM) had been established. It is
recognised as an effective information tool, particularly in providing an
electronic database and e-discussion template in support for activities of the
ASEAN cooperation in forestry, ranging from forest certification process,
ASEAN
common
position
in
international
forest
policy
processes,
implementation of CITES, and exchanging information on ASEAN herbal and

medicinal plants and R&D matters.
Following to the endorsement of ASEAN Criteria and Indicators for
Sustainable Management of Tropical Forest by AMAF, an online Monitoring,
Assessment and Reporting (MAR) format in the ASEAN Forestry Clearing
House Mechanism (CHM) website had been developed. This regional system
is designed to complement and strengthen current country reporting on MAR
towards a comprehensive regional reporting in achieving sustainable forest
management.
Promotion of conservation and sustainable use of natural resources is the

main agenda of the ASEAN Cooperation in CITES. It includes protection of
wild fauna and flora from illegal exploitation.
This is shown through
declaration of ASEAN Statement on CITES and endorsement of the ASEAN

Regional Action Plan on Trade in Wild Fauna and Flora by the AMAF. As a tool
in realising the commitments in the Statement, the ASEAN Wildlife Law
Enforcement Network (ASEAN-WEN) was launched in December 2005. The
Network
involves
Prosecutors,
officials
Specialized
from
CITES
Governmental
Authorities,
Customs,
Wildlife-law
Police,
Enforcement
Organizations and other relevant national law enforcement agencies.
Page 38 of 45
EMERGING AND CROSS CUTTING ISSUES

In the process of working towards an ASEAN Community, there are also
emerging and cross-cutting issues where broader coordination needs to be
achieved. The issues that have been identified include impact mitigation and
adaptation of climate change to food, agriculture and forestry, Sanitary and
Phytosanitary (SPS) measures that deal with human health and animal/ plant
health/ diseases, multi-sectoral cooperation on public health issues, etc
PROBLEMS FACED BY SAARC & ASEAN
Both political and economic reasons may compel the nations in the region
to shy away from establishing a regional market agreement. The African
National Congress (ANC) government, headed by Nelson Mandela, may
not
be
as
enthusiastic
about
regional
cooperation
as
one
may
theoretically suppose. The Mandela government's first priority is to jumpstart the country's shattered economy, for which it needs massive
infusions of funds from Western investors and international agencies such
as the World Bank. Naturally, its attentions then will be focused on the
West.
Furthermore, cultural reasons may also discourage South Africa's interest
in regional cooperation. The ANC's decision making echelons are staffed
Page 39 of 45
with leaders who have little or no knowledge of South Asian countries. The
exiles were mainly in Europe and are Western in orientation and by
attitude. Even those who stayed back during apartheid had no direct
contact with countries such as India. For many of them, India means little
more than the Indian community in the country. They happily participate
in India's festival of lights celebration if it means keeping the local Indians
happy, but have hardly any idea of India's size and regional importance.
South Asia provides a scenario of both hope and despair. The area must
overcome a number of unfavorable factors before a trading bloc could
become a reality.
There is its asymmetry with India, larger than all the rest put together,
something not to be discussed lightly, when 80 million Germans can
sometimes terrify more than 200 million other Europeans. As has been
remarked. It is instructive to move away from the obsession of taking
resolution of Indian-Pakistani problems as the principal solution to South
Asian progress. This is not to deny its importance. But the evolution and
present state of India's relations with her other neighbors also have useful
lessons. The suspicion and distrust that still permeate these nations
should not be underestimated (Bhargave, 1994).

India's inheritance of the mind-set of its British imperial predecessors and
its display of insensitivity from time to time towards its neighbors'
genuine concerns.
South Asian countries need to establish an identity and ethos of their own,
which can generate the necessary self-confidence.

The traditional hostility between India and Pakistan is difficult to resolve.
Pakistan was created by a partition on the basis of religion. History shows
that such partitions establish an animus that is very difficult to remove.
Ireland, Cj^prus, and, until recently, Palestine are the examples.

Pakistan still faces an identity crisis, with the alleged security threat from
India providing the necessary cement. Kashmir is a tangible focus with
which public emotions can be whipped up. These underlying problems
need to be attended to before market integration is feasible. The crucial
Page 40 of 45
problem to be addressed is that of security, not territory. As a first step,

this means reversing the arms race which has cost both economies dearly.
The maxim of arms limitation with verification is indeed applicable here.

This is not an insurmountable task. India and Pakistan already have an
enduring agreement on using Indus waters and have succeeded in
demarcating most of their boundaries (Reddy, 1981). Economically
speaking, the size of the market is an important determinant of market
agreement success. In terms of population, the Indian Ocean rim market
is large, comprising 1.3 billion customers. But the dominance of three
countries in the region (India, Pakistan, and Bangladesh) should be noted.

That means major industrial activity will take place in a few countries, the
large ones, and perhaps South Africa. Bernhard Federer (975) reminds us:
Empirical comparisons have shown that there is hardly a country with a
population of 10 million which possesses its own automobile production,
an aircraft industry or an industry manufacturing heavy capital goods
mechanical or electricalor a production of large electronic equipment
within its own territory.

The larger the economy, the greater is the probability that a country
produces all the goods mentioned. Industrialized countries with a
population of over 50 million generally produce all these.
CONCLUSION
This literature supports the major contribution of SAARC in the promotion of
trade. Discussion begins with basic trade agreements that play a very
important role in the promotion of trade. These agreements give the detailed
regulations for trade like the import and export duties etc. Replacement of
Page 41 of 45
SAFTA into SAPTA improved the trade regulations that better enable the
member states to trade their essentials across the boundaries.
The recent trade agreement between Pakistan and Afghanistan is a call to
promote trade named as APTTA. Pakistan will make progress in its trade line
and now is able to offer its goods globally. The main focus of the study is on
the barriers and facilitations of trade among SAARC the main barrier to trade
among
SAARC
includes
policy
hinge
and
security
issues
and
the
democratically issues that includes the spillover effects including smuggling

of weapons, health security environment, issues of Indo-Pak corporation, and
bilateral conflicts. Conflicts includes Kashmir issues, Kargil war, terrorism,
issues of inferiority of mankind, displeasing Indian Peace Keeping Force,
contention on Farraka barrage and atomic energy crisis.
After these bilateral conflicts some of the most importantly affecting
geopolitical and institutional hurdles are discussed in detail. Literature
highlights the measures that enable the member state to maintain the trade
relations. SAFTA provides detail list of facilitations of trade among the
regional states that includes the legal regulations of this agreement.
International Journal of Business and Social Science Vol. 2 No.10; June 2011
127.
There should be strong trade relations among countries which contributes a
lot towards their development. Trade centers are established in the countries
where
trade
level
is
low.
Policies
are
made
and
implemented
for
strengthening trade in various countries. Positive steps are taken including

reducing taxes, duties and charges on imports and exports. World Trade
Organization (WTO) worked for the enhancement of trade in under
developed countries.
Summing up the research study in only few words of a line, the most
important role played in trade among SAARC is by SAFTA that gives detailed
improved measures of trade and help the member states to precede their
Page 42 of 45
trade progressively and also give prompt measures to trade among SAARC.
S. Wilson & Otsuki, 2007 also supported the research study. Limitations are
the inappropriate policies of SAARC and the unfruitful amendments in the
agreements of SAARC. Like the article 10 (general provision) of SAARC policy
disallows the discussion of bilateral conflicts.
It also includes the violation of democratic values of consensus like the
postponement of 11th summit, scheduled to be held in November 1999(The
Daily Independent, Dhaka December 26, 2001). Further research studies
could highlight the changes in the existing agreements of trade among
SAARC states as well as on the new trade promoting agreements of SAARC
Page 43 of 45
REFERENCES:
www.asean.org
www.asean.org/news/item/overview-of-asean-india-dialogue-relations
Dahi, O. S., & Demir, F. (2013). Preferential trade agreements and
manufactured goods exports: does it matter whom you PTA
with?.Applied Economics, 45(34), 4754-4772.
doi:10.1080/00036846.2013.804169
Jain, S. C., & Ghauri, P. N. (1996). COMMENTARY: Indian Ocean Rim
Trade Bloc: Prospects and Problems. International Executive,38(5), 583-
597.
www.saarc-sec.org
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REGIONAL TRADE BLOCKS

NATIONAL INSTUITE OF FASHION TECHNOLOGY

Regional trade blocks are associations of nations at governmental level to

Defense against global competition is obtained through

established tariffs on goods produced by member states, import quotas,

SOUTH ASEAN ASSOCIATION FOR REGIONAL

NATIONAL INSTUITE OF FASHION TECHNOLOGY

Though SAARC covers 3% area of world but it has 21% population of

Economic Union by 2020.

The South Asian Association for Regional Cooperation (SAARC) is a political

NATIONAL INSTUITE OF FASHION TECHNOLOGY

SAARC EXTERNAL RELATIONS

impressive theoretical tradition behind it, globalism is a more recent concept

NATIONAL INSTUITE OF FASHION TECHNOLOGY

definitions of regionalism. For the critics, the regionalist trend constitutes a

independence and could be differentiated according to the level and scope

NATIONAL INSTUITE OF FASHION TECHNOLOGY

meteorology; and health and population activities. Later, transport; postal

NATIONAL INSTUITE OF FASHION TECHNOLOGY

Countries under the South Asian Free Trade Area

NATIONAL INSTUITE OF FASHION TECHNOLOGY

NATIONAL INSTUITE OF FASHION TECHNOLOGY

First SAARC Summit , Dhaka, 1985

Second SAARC Summit, Bangalore, 1986

Third SAARC Summit , Kathmandu, 1987

Forth SAARC Summit, Islamabad, 1986

Fifth SAARC Summit, Male, 1990

Sixth SAARC Summit, Colombo ,1991

Seventh SAARC Summit Dhaka, 1993

Eighth SAARC Summit New Delhi, 1995

Ninth SAARC Summit Male, 1997

Tenth SAARC Summit, Colombo, 1998

Eleventh SAARC Summit, Kathmandu, 2002

Twelfth SAARC Summit, Islamabad, 2004

Thirteenth SAARC Summit, Dhaka, 2005

Fourteenth SAARC Summit , New Delhi, 2007

Fifteenth SAARC Summit, Colombo, 2008

Sixteenth SAARC Summit, Thimpu , 2010

NATIONAL INSTUITE OF FASHION TECHNOLOGY

Seventeenth SAARC Summit, Addu City, 2011

Eighteenth SAARC Summit, Kanthmandu, 2014

NATIONAL INSTUITE OF FASHION TECHNOLOGY

SAARC AND CHINA

countries under its foreign policy named as pearl of string.

NATIONAL INSTUITE OF FASHION TECHNOLOGY

boost Chinese manufacturing industry.

China might veto important proposals relating to South Asian

BARRIERS TOWARDS TRADE AMONG SAARC BARRIERS

NATIONAL INSTUITE OF FASHION TECHNOLOGY

NATIONAL INSTUITE OF FASHION TECHNOLOGY

ongoing talks to promote peace by Indo-Pakistan and the assurance of

NATIONAL INSTUITE OF FASHION TECHNOLOGY

be handled by the mutual agreements among the SAARC member states.

NATIONAL INSTUITE OF FASHION TECHNOLOGY

exist between India and Bangladesh. Disputes were arisen on Farrakka

NATIONAL INSTUITE OF FASHION TECHNOLOGY

various prospects includes: political measures, competitive measures, trade

ASSOCIATION OF SOUTHEAST ASIAN

NATIONAL INSTUITE OF FASHION TECHNOLOGY

NATIONAL INSTUITE OF FASHION TECHNOLOGY

The ASEAN Emblem shall be the official emblem of ASEAN.

The ASEAN Emblem represents a stable, peaceful, united and dynamic

The circle represents the unity of ASEAN.