The South Asian Regional Cooperation Association (SAARC) was adopted on 8 December 1985.La ASARC charter was adopted by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with the aim of accelerating the process of economic and social development in the Member States. The Agreement on the South Asia Free Trade Area (SAFTA) was signed at the Twelfth ASARC Summit on 6 January 2004 in Islamabad. The ratification of SAFTA by all Member States is an important achievement. ASARC`s mandate. On 22 March 2006, the SAARC secretariat issued a communication officially announcing the entry into force of the SAFTA agreement effective January 1, 2006. China`s strong economic relations with Pakistan, unlike India`s minimal formal trade with its western neighbour, widen the gap in the volume of trade between the two countries. Although China`s trade volume is consistently larger, the gap without Pakistan (as shown in Figure 2) is narrowing to almost half. This gap is attributed to the 2006 China-Pakistan Free Trade Agreement (CPFTA), which significantly increased trade between the two countries (Figure 5). The gap between India`s trade with the region is much smaller, given that Pakistan`s official trade share is relatively small (Chart 3). With the exception of Pakistan, the gap between India and China`s trade with South Asia (N7) is relatively narrow in 2018 ($12.87 billion) (Chart 2). The free trade dynamics of the 2000s were largely lost with India`s neighbours. Trade liberalization initiatives under the Multi-Sector Technical and Economic Cooperation Initiative (BIMSTEC) under the Bay of Bengal have been under negotiation for more than 15 years. SAFTA and the even bolder idea of a South Asian economic union are no longer at the centre of New Delhi`s regional concerns.

India`s free trade agreement with Sri Lanka dates back 20 years and negotiations for an expanded Comprehensive Economic Partnership Agreement (CEPA) are still delayed. As the global agenda for multilateral trade liberalization has stalled, India must double its focus on regional trade agreements. This requires political leaders to sacrifice national protectionism to pursue the long-term strategic interests of greater trade interdependence with their neighbours. Appendix III Revenue Loss Compensation Mechanism for Least Developed Countries (MCRL): Appendix III sets out the mechanism and its rules and rules to compensate the least developed Member States for the costs of their losses resulting from the trade liberalization programme under this agreement.

The South Asian Regional Cooperation Association (SAARC) was adopted on 8 December 1985.La ASARC charter was adopted by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with the aim of accelerating the process of economic and social development in the Member States. The Agreement on the South Asia Free Trade Area (SAFTA) was signed at the Twelfth ASARC Summit on 6 January 2004 in Islamabad. The ratification of SAFTA by all Member States is an important achievement. ASARC`s mandate. On 22 March 2006, the SAARC secretariat issued a communication officially announcing the entry into force of the SAFTA agreement effective January 1, 2006. China`s strong economic relations with Pakistan, unlike India`s minimal formal trade with its western neighbour, widen the gap in the volume of trade between the two countries. Although China`s trade volume is consistently larger, the gap without Pakistan (as shown in Figure 2) is narrowing to almost half. This gap is attributed to the 2006 China-Pakistan Free Trade Agreement (CPFTA), which significantly increased trade between the two countries (Figure 5). The gap between India`s trade with the region is much smaller, given that Pakistan`s official trade share is relatively small (Chart 3). With the exception of Pakistan, the gap between India and China`s trade with South Asia (N7) is relatively narrow in 2018 ($12.87 billion) (Chart 2). The free trade dynamics of the 2000s were largely lost with India`s neighbours. Trade liberalization initiatives under the Multi-Sector Technical and Economic Cooperation Initiative (BIMSTEC) under the Bay of Bengal have been under negotiation for more than 15 years. SAFTA and the even bolder idea of a South Asian economic union are no longer at the centre of New Delhi`s regional concerns.

India`s free trade agreement with Sri Lanka dates back 20 years and negotiations for an expanded Comprehensive Economic Partnership Agreement (CEPA) are still delayed. As the global agenda for multilateral trade liberalization has stalled, India must double its focus on regional trade agreements. This requires political leaders to sacrifice national protectionism to pursue the long-term strategic interests of greater trade interdependence with their neighbours. Appendix III Revenue Loss Compensation Mechanism for Least Developed Countries (MCRL): Appendix III sets out the mechanism and its rules and rules to compensate the least developed Member States for the costs of their losses resulting from the trade liberalization programme under this agreement.

The South Asian Regional Cooperation Association (SAARC) was adopted on 8 December 1985.La ASARC charter was adopted by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with the aim of accelerating the process of economic and social development in the Member States. The Agreement on the South Asia Free Trade Area (SAFTA) was signed at the Twelfth ASARC Summit on 6 January 2004 in Islamabad. The ratification of SAFTA by all Member States is an important achievement. ASARC`s mandate. On 22 March 2006, the SAARC secretariat issued a communication officially announcing the entry into force of the SAFTA agreement effective January 1, 2006. China`s strong economic relations with Pakistan, unlike India`s minimal formal trade with its western neighbour, widen the gap in the volume of trade between the two countries. Although China`s trade volume is consistently larger, the gap without Pakistan (as shown in Figure 2) is narrowing to almost half. This gap is attributed to the 2006 China-Pakistan Free Trade Agreement (CPFTA), which significantly increased trade between the two countries (Figure 5). The gap between India`s trade with the region is much smaller, given that Pakistan`s official trade share is relatively small (Chart 3). With the exception of Pakistan, the gap between India and China`s trade with South Asia (N7) is relatively narrow in 2018 ($12.87 billion) (Chart 2). The free trade dynamics of the 2000s were largely lost with India`s neighbours. Trade liberalization initiatives under the Multi-Sector Technical and Economic Cooperation Initiative (BIMSTEC) under the Bay of Bengal have been under negotiation for more than 15 years. SAFTA and the even bolder idea of a South Asian economic union are no longer at the centre of New Delhi`s regional concerns.

India`s free trade agreement with Sri Lanka dates back 20 years and negotiations for an expanded Comprehensive Economic Partnership Agreement (CEPA) are still delayed. As the global agenda for multilateral trade liberalization has stalled, India must double its focus on regional trade agreements. This requires political leaders to sacrifice national protectionism to pursue the long-term strategic interests of greater trade interdependence with their neighbours. Appendix III Revenue Loss Compensation Mechanism for Least Developed Countries (MCRL): Appendix III sets out the mechanism and its rules and rules to compensate the least developed Member States for the costs of their losses resulting from the trade liberalization programme under this agreement.

The South Asian Regional Cooperation Association (SAARC) was adopted on 8 December 1985.La ASARC charter was adopted by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with the aim of accelerating the process of economic and social development in the Member States. The Agreement on the South Asia Free Trade Area (SAFTA) was signed at the Twelfth ASARC Summit on 6 January 2004 in Islamabad. The ratification of SAFTA by all Member States is an important achievement. ASARC`s mandate. On 22 March 2006, the SAARC secretariat issued a communication officially announcing the entry into force of the SAFTA agreement effective January 1, 2006. China`s strong economic relations with Pakistan, unlike India`s minimal formal trade with its western neighbour, widen the gap in the volume of trade between the two countries. Although China`s trade volume is consistently larger, the gap without Pakistan (as shown in Figure 2) is narrowing to almost half. This gap is attributed to the 2006 China-Pakistan Free Trade Agreement (CPFTA), which significantly increased trade between the two countries (Figure 5). The gap between India`s trade with the region is much smaller, given that Pakistan`s official trade share is relatively small (Chart 3). With the exception of Pakistan, the gap between India and China`s trade with South Asia (N7) is relatively narrow in 2018 ($12.87 billion) (Chart 2). The free trade dynamics of the 2000s were largely lost with India`s neighbours. Trade liberalization initiatives under the Multi-Sector Technical and Economic Cooperation Initiative (BIMSTEC) under the Bay of Bengal have been under negotiation for more than 15 years. SAFTA and the even bolder idea of a South Asian economic union are no longer at the centre of New Delhi`s regional concerns.

India`s free trade agreement with Sri Lanka dates back 20 years and negotiations for an expanded Comprehensive Economic Partnership Agreement (CEPA) are still delayed. As the global agenda for multilateral trade liberalization has stalled, India must double its focus on regional trade agreements. This requires political leaders to sacrifice national protectionism to pursue the long-term strategic interests of greater trade interdependence with their neighbours. Appendix III Revenue Loss Compensation Mechanism for Least Developed Countries (MCRL): Appendix III sets out the mechanism and its rules and rules to compensate the least developed Member States for the costs of their losses resulting from the trade liberalization programme under this agreement.