AGREEMENT ON SAARC PREFERENTIAL TRADING ARRANGEMENT (SAPTA) Answer: The SAARC Preferential Trade Agreement (SAPTA) is a trade agreement among the member countries of the South Asian Association for Regional Cooperation (SAARC) that was signed in 1993. The agreement seeks to promote trade and economic cooperation among the member countries through the gradual reduction of tariffs and other trade barriers. Answer: The member countries of SAARC are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Answer: The main objectives of SAPTA are to promote and increase trade among the member countries by reducing and eliminating tariff and non-tariff barriers, to provide fair and equitable treatment to each other's goods, and to create a framework for cooperation in the fields of trade, investment, and technology transfer. Answer: SAPTA works by reducing and eliminating tariffs on certain products traded among member countries. Each member country has submitted a list of products that it is willing to reduce or eliminate tariffs on. These lists are called "Sensitive Lists." The reduction or elimination of tariffs on products in the Sensitive Lists takes place gradually over a period of time, in accordance with a predetermined schedule. Answer: The benefits of SAPTA include increased trade among member countries, which can lead to economic growth and development. The reduction of tariffs can also make products cheaper and more accessible for consumers in member countries. SAPTA also provides a framework for cooperation in the fields of trade, investment, and technology transfer, which can lead to further economic benefits. Answer: SAPTA has faced several challenges, including non-tariff barriers such as complex customs procedures, standards and certification requirements, and inadequate infrastructure. Some member countries have also been reluctant to fully implement the agreement, which has hindered progress. In addition, political tensions between some member countries have also affected the implementation of SAPTA. Answer: SAPTA has been replaced by the South Asian Free Trade Area (SAFTA) agreement, which was signed in 2004 and came into force in 2006. SAFTA aims to create a free trade area among the member countries of SAARC, with the goal of eliminating tariffs on all goods traded among member countries. However, the implementation of SAFTA has also faced several challenges. |
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