South Asia Free Trade Agreement Sample Clauses

South Asia Free Trade Agreement. The South Asian Free Trade Area (SAFTA) is an agreement reached on 6th January 2004 at the 12th SAARC summit in Islamabad, Pakistan. It created a free trade area of 1.6 billion people in Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016.The agreement was ratified by seven South Asian Governments. SAFTA requires the developing countries in South Asia (India, Pakistan and Sri Lanka) to bring their duties down periodically. The least developed nations in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives) have an additional time period to reduce tariffs to zero. The purpose of SAPTA is to encourage and elevate common contract among the countries such as medium and long term contracts. Contracts involving trade operated by states, supply and import assurance in respect of specific products etc. It involves agreement on tariff concession like national duties concession and non- tariff concession. The objectives of the agreement are to promote and enhance mutual trade and economic cooperation among contracting states
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