South Asian Association for Regional Corporation

To bring about regional cooperation among South Asian Countries, the SAARC was launched in December 1985 by seven nations of South Asia— Bangladesh, Bhutan, Pakistan, India, Sri Lanka, Maldives and Nepal. In 2007, Afghanistan joined this group as its 8th member nation.

Objectives of SAARC:

•        To promote welfare of the people of the region and to improve the quality of life.

•        To accelerate economic growth in the region through regional cooperation.

•        To accelerate social progress and cultural development.

•        To promote and strengthen collective self-reliance among the member nations.

•        To contribute to mutual trust, understanding and appreciation of each other’s problems.

•        To strengthen cooperation with other developing countries.

•        To strengthen cooperation amongst member nations at international forums (such as WTO) on matters of common interests.

•        To cooperate with international and regional organisations with similar objectives.

SAPTA (South Asian Preferential Trade Agreement)

As a step towards trade liberalisation among SARC member nations, SAPTA was signed by Council of Ministers in Dhaka on April 11, 1993 during the 7th SAARC Summit. The SAPTA Agreement came into force in December 1995. SAPTA contains provisions for giving special and favourable treatment to -the LDCs in the SARC region. Due to this, a number of products are enjoying preferential treatment.

SAFTA (South Asian Free Trade Agreement)

In 2004, the SARC countries signed the SAFTA. This agreement on setting up of SAFTA is likely to provide a boost to trade growth within the region. The SAFTA came into operation with effect from 1.1.2006.

Progress and Prospects

The progress of regional cooperation among the SAARC member countries is very slow due to ethnic problems, border conflicts, differences in political systems and ideologies. The participating countries have to bury their differences in the common interest and for the purpose of promoting their trade. They have to realize that the regional economic growth can be faster through cooperation rather than competition among the member nations.

There are immense potentialities for mutual cooperation for the purpose of growth and prosperity of the region, and also to promote peace and stability in the region.