Agreement On Saarc Preferential Trading Arrangement (Sapta)

(b) the installation of production and other production sites in the least developed states to meet intra-regional demand under cooperation agreements; In accordance with the trade liberalization programme, States Parties must meet the following timetable for tariff reduction. Non-least developing countries should reduce the current tariff to 20% and reduce current tariffs in smaller developing countries by 30%. But the system of trade liberalization is not applicable to the sensitive list, since this list must be negotiated between the contracting countries and then negotiated. A sensitive list will include a common agreement between the States Parties in favour of the least developed States Parties. The SAFTA Council of Ministers (SMC) will participate to review the sensitive list every four years to reduce the list. The South Asian Free Trade Area (SAFTA) is an agreement reached on 6 January 2004 at the 12th ASAC Summit in Islamabad, Pakistan. It has created a free trade area of 1.6 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka to reduce tariffs on all goods traded by 2016. The SAFTA agreement entered into force on 1 January 2006[1] and is operational after the ratification of the agreement by the seven governments. SAFTA called on developing countries in South Asia (India, Pakistan and Sri Lanka) to reduce their tariffs to 20% during the first phase of the two-year period, until 2007. During the last five-year period, which ended in 2012, the 20% fee was reduced to zero in a series of annual reductions.

The least developed countries of South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and the Maldives) had an additional three years to reduce tariffs to zero. India and Pakistan ratified the treaty in 2009, while Afghanistan, SAARC`s eighth member state, ratified the SAFTA protocol on 4 May 2011. [2] (5) Critical circumstances lead to the emergence of an exceptional situation in which massive preferential imports cause or threaten to cause serious harm that is difficult to repair and requires immediate action. (a) argue that the products are the products or manufacture of the State party from which they are imported and that these products are eligible for preferential concession; and national concession plans attached to this agreement may receive preferential treatment if they comply with the rules of origin, including specific rules of origin, for the less developed states listed in Schedule III. 7 The partial accumulation provided for in Rule 4 means that only products of origin in the territory of a contracting state can be taken into account if they are used as inputs for a finished product that can benefit from preferential treatment in the territory of another contracting state. (a) the identification, preparation and implementation, in the territories of the least developed states, of industrial and agricultural projects that could form the basis for the expansion of exports from the least developed states to other contracting states, if necessary through financing and cooperation buy-back agreements;