Question
Write a short note on the role and the limitations of SAARC as a forum for facilitating economic cooperation among the South Asian countries.
Solution
The South Asia states recognition of importance for cooperation among themselves led to the formation of SAARC.
1. The SAARC is a major regional organisation for cooperation through multilateral means. In the economic field, SAARC members signed the South Asian Free Trade Agreement (SAFTA) which promised the formation of a free trade zone for whole of South Asia.
2. The aim of SAFTA is for all to free trade across the borders. The agreement was signed in 2004 and came into effect on 1 January 2006. SAFTA aims at lowering trade tariffs by 20%.
3. There is difference of opinion about SAFTA. Some countries feel that by SAFTA India will invade their markets by her goods. They think India will influence their societies and politics through commercial ventures and a commercial presence in their countries.
4. On the other hand, the Indian opinion is that all countries will benefit from SAFTA and there will be more cooperation on political issues. While others think that SAFTA is not useful to India because India has already bilateral agreements with Bhutan, Nepal and Sri Lanka.
1. The SAARC is a major regional organisation for cooperation through multilateral means. In the economic field, SAARC members signed the South Asian Free Trade Agreement (SAFTA) which promised the formation of a free trade zone for whole of South Asia.
2. The aim of SAFTA is for all to free trade across the borders. The agreement was signed in 2004 and came into effect on 1 January 2006. SAFTA aims at lowering trade tariffs by 20%.
3. There is difference of opinion about SAFTA. Some countries feel that by SAFTA India will invade their markets by her goods. They think India will influence their societies and politics through commercial ventures and a commercial presence in their countries.
4. On the other hand, the Indian opinion is that all countries will benefit from SAFTA and there will be more cooperation on political issues. While others think that SAFTA is not useful to India because India has already bilateral agreements with Bhutan, Nepal and Sri Lanka.
