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Safta Agreement Upsc

The paper focuses on the impact of SAFTA`s BPL program. The estimates presented here therefore provide a partial view of the overall impact of SAFTA. However, by focusing on this homogeneous and directly quantifiable component, it is possible to compare this agreement with other hypothetical IFCs and assess the benefits of SAFTA over the alternative of looking outside the region to conclude trade agreements. Although the initial reduction in tariffs by the TLP is small, achieving the medium-term objectives of the agreement would require substantial reductions, particularly from Bhutan and the Maldives. Overall, the initial requirement to have tariffs of less than 30% (LDCs) and 20% for non-LDCs by 2008 would have a minor impact. However, the final target of a maximum tariff level of 5% will mean a reduction in the average tariff rate for Sri Lanka and Pakistan from 2 to 3 percentage points to 16 to 18 percentage points for Bhutan and the Maldives16. These scenarios examine the following scenarios: (i) the effects of SAFTA tariffs; and (ii) the extension of SAFTA to trade agreements with other ATRs. In the first sentence, all tariffs between South Asian countries are above 5%, the ceiling of the SAFTAs TLP target. In the second sentence, South Asia and the corresponding bloc (NAFTA, ASEAN USA or Plus 3) agree to each other a 50% reduction in preferential tariffs.

These scenarios are supposed to be illustrating. They illustrate the potential impact of the implementation of the SAFTA TLP and other RTAs. While the final composition of each ATR would be the result of a comprehensive negotiation process, the simulations indicate the relative impact of a similar tariff reduction programme between different groups of countries. The 50% reduction is a useful measure, as saFTA`s TLP has an effect almost identical to that of a 50% reduction in tariffs among SAFTA members (called SA- ). The most recent customs and trade data have been used as a status quo for each pair of countries. The main objective of the agreement is to promote competition in the region and to offer equitable benefits to the countries concerned. It must benefit the citizens of countries by bringing transparency and integrity between nations. SAFTA was also created to strengthen the level of trade and economic cooperation between ASARC states by reducing tariffs and trade barriers and to grant specific preferences to least developed countries (LDCs) within SAARC, nations.to create a framework for further regional cooperation.

The variation in customs revenues (negative in all ATRs) would probably be far from uniform. Given the sharp increase in South Asian imports from NAFTA, an agreement would have the second least significant impact on customs revenues.

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