SAARC AND SAPTA

Afsal
Jagadish
Nagendra
Shruti
Vimal




What is SAARC?
The South Asian Association For Regional
Cooperation is an organization of South Asian
Nations, founded in December 1985
It is dedicated to economic, technological, social and
cultural development emphasizing collective self-
reliance
History
The concept of SAARC was first adopted by
Bangladesh during 1977, under the administration of
President Ziaur Rahman
In the late 1970s, SAARC nations agreed upon the
creation of a trade bloc consisting of South Asian
Countries
The idea of regional cooperation in South Asia was
again mooted in May 1980
The first summit held in Dhaka on 8 December in
1985


Members of SAARC

Current members


Observers

Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka

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

Headquarters
It was established when its Charter was formally
adopted on 8
th
December 1985 by the Heads of State
or Government of Bangladesh, Bhutan, India ,
Maldives, Nepal, Pakistan, and Sri Lanka
Afghanistan joined the organization in 2005
The headquarters of the SAARC Secretariat are in
Kathmandu, Nepal
Reasons for formation of SAARC
Central location in Asia
All countries gained independence after second world
war
As a result of British Colonialism, all countries have
same cultural background and history
The region is poor and over populated
Predominance of agriculture

The 5 Areas of Cooperation

Agriculture & Rural Development.
Telecommunication, Science, Technology &
Meteorology.
Health & Population Activity.
Transport
Human Resources Development.
Establishments
The SAARC policies aim to promote welfare economics, collective
self-reliance among the countries of South Asia, and to accelerate
socio-cultural development in the region

The SAARC has developed a role in external relations around the
world

Permanent diplomatic relations have been established with
the EU, the UN (as an observer), and other multilateral entities

The 18th SAARC Summit would be held at Kathmandu, Nepal in
November 2014
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

SAARC Objectives

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 realize 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

To co-operate with international and regional organizations with
similar aims and purposes

To maintain peace in the region

Principles

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 on the basis of consensus
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

Secretariat

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 the Secretary General appointed by the Council of
Ministers from Member Countries in an alphabetical order for a
three-year term

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
Council of Ministers

Council of Ministers consisting of the Foreign Ministers of the
Member States established with the following functions:

Formulation of the policies of the ASSOCIATION

Review of the progress of co-operation under the ASSOCIATION

Decision on new areas of co-operation

Establishment of additional mechanism under the ASSOCIATION as
deemed necessary

Decision on other matters of general interest to the ASSOCIATION

Facts and Figures
Established- 1985 Dec.7 Dhaka
Secretariat- Kathmandu Nepal 16 January 1987
Secretary General 3 years term rotating among states
Summit:- (Heads of Government & students) highest
body meets every year
Council of minister:- (foreign minister) meets twice a
year
Standing Committee comprising the Foreign Secretaries
Technical Committees- Comprising representatives of
member states are responsible for the implementation.
Co-ordination and monitoring of the programme in their
respective areas of co-operation

SAARC Financial Contribution
Afghanistan, Bhutan & Maldives- 5% each
Nepal, Bangladesh, Sri Lanka- 10.72% each
Pakistan- 22.53%
India- 30.31%
Challenges
Six South Asian countries remains a small player in
global markets over 1% of total global trade
During the eleven-year period of 1995 to 2005, South
Asias share in world merchandise exports marginally
increased from 0.9% to 1.2%
In 1995, South Asian Preferential Trade Agreement
(SAPTA) was launched but intraregional trade has failed
to pick up
In January 2006, SAARC succeeded in launching the
South Asian Free Trade Agreement South Asian Free
Trade Agreement (SAFTA) was launched, its
implementation has faced political hurdles
Opportunities
Achieving greater social cohesion within India- By
connecting the diverse ethnic groups within India
with their counterparts across the borders
Defining and defending Indias regional space- China
is now making significant efforts to improve its
access to South Asian economies and markets
Is SAARC a Failure?
The bloc has not moved away from declarations of intent to
concrete implementation
The proposal to establish South Asian Food Reserve and
South Asian Development Fund have also failed
The perceptions of the failure of SAARC to implement its
charter have been affected by the political climate obtaining in
the region
Regional Centers

SAARC Agricultural Centre (SAC), Dhaka
SAARC Meteorological Research Centre (SMRC), Dhaka
SAARC Tuberculosis Centre (STC), Kathmandu
SAARC Documentation Centre (SDC), New Delhi
SAARC Human Resources Development Centre (SHRDC), Islamabad
SAARC Coastal Zone Management Centre (SCZMC), Maldives
SAARC Information Centre (SIC), Nepal
SAARC Energy Centre (SEC), Pakistan
SAARC Disaster Management Centre (SDMC), India
SAARC Development Fund (SDF), Bhutan
SAARC Forestry Centre (SFC), Bhutan
SAARC Cultural Centre (SCC), Sri Lanka

SAPTA South asian preferential
trading agreement
Introduction
In December 1991, the Sixth Summit held in Colombo
approved the establishment of an Inter-Governmental Group
(IGG) to formulate an agreement to establish a SAARC
Preferential Trading Arrangement (SAPTA) by 1997.
The Agreement on SAPTA was signed on 11 April 1993 and
entered into force on 7 December 1995 well in advance of the
date stipulated by the Colombo Summit.
The main purpose of SAPTA agreement was to promote and
sustain mutual trade and economic cooperation within the
SAARC region (Member states) through the exchange of
concessions.
Basic principles of SAPTA
To equally benefit all the Contracting States, taking into
account their respective level of economic and industrial
development, the pattern of their external trade, and trade
and tariff policies and systems.
SAPTA shall be negotiated step by step. improved and
extended in successive stages with periodic reviews
The special needs of the Least Developed Contracting States
shall be clearly recognized and concrete preferential measures
in their favor.
SAPTA shall include all products manufactures and
commodities in their raw. semi-processed and processed
forms.
Objectives of SAPTA
Gradual liberalization of trade among the SAARC
members.
Elimination of trade barriers among the SAARC
nations. Especially, Tariff reduction.
SAPTA would be improved gradually for the mutual
benefit of all the practice in the product areas
covering raw material, semi-finished goods and
finished goods for mutual convenience.
Promoting and sustaining trade and economic
cooperation among the member nations of SAARC.



SAPTA makes provision for information,
consultation and dispute settlement. Least
development countries such as Bhutan and Nepal
among the members are given extra concessions.
Members can withdraw from SAPTA by giving a 6
month notice.
Critics have however observed that the SAPTA has
not been functioning effectively due to conflict
between India and Pakistan. Further, the SAARC
members lack significant trade potential and
enthusiasm such as in the case of ASEAN members.
Negotiations in SAPTA
The Contracting States may conduct their
negotiations for trade liberalization in
accordance with any or a combination of the
following approaches and procedures:- (a)
Product-by-product basis
(b) Across-the-board tariff reductions
(c) Sectorial basis
(d) Direct trade measures.
Contracting States agreed to negotiate tariff
preferences initially on a product-by-product basis.

Products covered by PTA
Raw or mineral products extracted from its soil, its water or its sea
beds:
Agricultural products harvested there;
Animals born and raised there;
Products obtained from animals referred to in paragraph (c) above;
Products obtained by hunting or fishing conducted there;
products of sea fishing and other marine products taken from the
high seas by its
Vessels products processed and/or made on boards its factory ships
exclusively from
products referred to in paragraph (f) above;
used articles collected there, fit only for the recovery of raw
materials;
waste and scrap resulting from manufacturing operations conducted
there;

SAFTA South asian free trading
agreement

SAFTA
The South Asian Free Trade Area or SAFTA is an
agreement reached on 6 January 2004 at the
12th SAARC summit in Islamabad, Pakistan. It
created a free trade area of 1.6 billion people in
Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka (as of 2011, the
combined population is 1.8 billion people).
The basic principles underlying SAFTA are as under;
overall reciprocity and mutuality of advantages so as to
benefit equitably all Contracting States, taking into
account their respective level of economic and industrial
development, the pattern of their external trade, and
trade and tariff policies and systems;
negotiation of tariff reform step by step, improved and
extended in successive stages through periodic reviews;
recognition of the special needs of the Least Developed
Contracting States and agreement on concrete
preferential measures in their favour;
inclusion of all products, manufactures and commodities
in their raw, semi-processed and processed forms.
OBJECTIVES
The objective of the agreement is to promote
competition in the area and to provide equitable
benefits to the countries involved.
It aims to benefit the people of the country by
bringing transparency and integrity among the
nations.
SAFTA was also formed in order to increase the level
of trade and economic cooperation among the
SAARC nations by reducing the tariff and barriers
and also to provide special preference to the Least
Developed Countries (LDCs)among the SAARC
nations.
INSTRUMENTS IN SAFTA

Trade Liberalization Programme
Rules of Origin
Institutional Arrangements
Consultations and Dispute Settlement
Procedures
Safeguard Measures
Any other instrument that may be agreed upon.
ACHIEVEMENTS
SAPTA and SAFTA brought into existence
making a better trade path between the
countries
SAARC constitutes South Asian Development
Fund
Agreement on mutual existence was signed by
member countries
Avoidance on double taxation was signed


South Asian University was started in Delhi in
the year 2010
Regional Food Security Essence
Promoted objective for Global shelter
Convention on Terrorism was signed in
November 1987
SAARC convention on Drugs signed on
November 1990
SAARC terrorist and drug monitoring desk