understanding as to what fta(free trade agreement) is, international business, SAFTA. understanding of trade relations betwwen saarc countries.

1. FREE TRADE
AGREEMENT

2. WHAT IS FTA?
• FTA- FREE TRADE AGREEMENT
• Facilitates tariff free trade between countries.
• Agreement which reduces the existing barriers
• It involves agreement on tariff concession like
national duties concession and non-tariff
concession.

3. S-A-F-T-A
• SOUTH-ASIAN-FREE-TRADE-AGREEMENT
• It is a FTA between the seven members of the
SAARC group.
• Includes
India, Bangladesh, Bhutan, Maldives, Nepal, Pa
kistan and Sri Lanka.
• The agreement incorporates trade in goods.
• Services and investment are not incorporated.

4. SAFTA IS SIGNED BETWEEN:
INDIA-BANGLADESH-SRILANKA-PAKISTAN-
BHUTAN-MALDIVES-NEPAL
SAARC COUNTRIES
SOUTH ASIAN ASSOCIATION OF REGIONAL COOPERATION

5. HISTORY
• SAFTA is an agreement reached on 6 January
2004 at the 12thSAARC Summit
in Islamabad, Pakistan.
• The officials signed a framework agreement on
SAFTA to reduce customs duties of all
traded goods to zero by the year 2016.
• The SAFTA agreement came into force on 1
January 2006.
• In the final five-year phase ending 2012, the
20 percent duty will be reduced to zero in a
series of annual cuts.

6. OBJECTIVES
• Trade Liberalization Programme
• Non-tariff Barriers
• Negative List (sensitive list of items)
• Rules of Origin
• Safeguard Measures
• Institutional Arrangements
• Consultations and Dispute Settlement
Procedures

7. BENEFITS TO MEMBER
NATIONS
• Significant gains for the small economies of the
region.
• Attracts foreign capital.
• Better political relations and peace.
• Part of the informal trade diverted to official
channels.
• Informal trade diversion brings in hefty
revenues for the nations.
• Elimination of tariffs has increased
intra-regional trade by 1.6 times the previous
trade.
• A unified approach together.

8. WHAT SAFTA STACKS IN FOR US?

9. REFERENCES
• http://www.financialexpress.com/news/what-
is-safta-what-are-its-benefits/159142
• http://en.wikipedia.org/wiki/South_Asian_Free
_Trade_Area
• http://www.saarc-
sec.org/userfiles/saftaagreement.pdf

10. TEAM:
SHWETA CHAURASIYA
RAJAT VAID
VIPUL AGGARWAL
AKSHIT KUMAR
CHANCHAL JHA
DHEERAJ GUPTA