South Asian Free Trade Area (SAFTA) is the free trade agreement of the South Asian Association for Regional Cooperation (SAARC) that promotes trade and economic cooperation between South Asian countries.

SAFTA came into effect in 2006, replacing the 1993 SAARC Preferential Trading Arrangement (SAPTA).

SAFTA Member Countries

South Asian Free Trade Area (SAFTA) has eight signatory countries, namely:

1. Afghanistan
2. Bangladesh
3. Bhutan
4. India
5. Maldives
6. Nepal
7. Pakistan
8. Sri Lanka

Special and Differential Treatment

SAFTA recognises the need for special and differential treatment (S&DT) for Least Developed Countries (LDCs).

S&DT incorporates varying levels of economic development and differing patterns of development of trade within SAFTA members.

Objectives of SAFTA

SAFTA’s objectives include:

1. Removing trade barriers and facilitating free trade of goods among the contracting countries.
2. Creating conditions for free competition within the regional trade bloc.
3. Ensuring benefits to all the contracting countries considering their varying levels of economic development.
4. Establishing effective implementation, application, and enforcement mechanisms of the agreement.
5. Providing appropriate dispute settlement mechanisms for the implementation of the agreement.
6. Formulating a framework for enhanced regional economic cooperation to expand and accelerate the mutual trade and economic benefits of SAFTA.

FAQs

Q1. What is the full form of SAFTA?

A1. The full form of SAFTA is South Asian Free Trade Area.

Q2. When did SAFTA come into force?

A2. SAFTA came into force in 2006, replacing the SAARC Preferential Trading Arrangement (SAPTA) of 1993.

Q3. Which countries are members of SAFTA?

A3. The eight signatory countries of SAFTA are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

Q4. What is the main objective of SAFTA?

A4. SAFTA’s main objective is to promote and develop mutual trade and economic cooperation between the member states by reducing trade barriers and facilitating the free flow of goods.

Q5. What is Special and Differential Treatment under SAFTA?

A5. SAFTA accords special and differential treatment (S&DT) to the Least Developed Countries (LDCs) within the framework of SAFTA, taking into account their differing levels and patterns of development and economic growth.

Q6. What does SAFTA seek to achieve besides trade liberalisation?

A6. In addition to liberalising trade, SAFTA seeks to promote free competition, equitable benefits, effective implementation, dispute settlement, and expanded regional economic cooperation.

Q7. Which agreement did SAFTA replace?

A7. SAFTA replaced the SAARC Preferential Trading Arrangement (SAPTA) of 1993.