South Asia Free Trade Agreement (Safta) Upsc

In accordance with the trade liberalization programme, the Contracting Parties must adhere to the following tariff reduction schedule. Non-developing countries should be reduced to 20 per cent of tariffs, which reduced no developing countries the least amount of existing customs and by 30 per cent by least developed countries. However, there is no trade liberalization system for the sensitive list, as this list must be negotiated between the contracting countries and then traded. The sensitive list will include a common agreement between the developing countries, which will favour the developing countries. The SAFTA Council of Ministers (SMC) will participate every four years to review the sensitive list in order to reduce the list. The establishment of an Intergovernmental Group (IIG) to develop an agreement for the establishment of a SAPTA by 1997 was approved at the sixth SAARC Summit held in Colombo in December 1991. SAFTA would have a similar impact on customs revenues. Smaller countries could find that their tariff collection decreases by up to 2 1/2 of GDP (for Bhutan), while India and Pakistan could not experience any significant change. It is important to note that these estimates ignore the potential gains from trade facilitation, such as the homogenization and simplification of customs administration, and the incentives to promote formal trade. Recent tax reforms in the region and other developing countries show that difficulties in adapting the tax system to compensate for customs losses can be significantly mitigated if technical changes are accompanied by strong political commitment (IMF, 2006). For this purpose, India, which gradually reduced trade barriers between 1991 and 1992, absorbed a significant share of customs losses by improving overall tax productivity (Poirson, 2006). The objective of SAFTA is to promote and improve common treaties between countries, such as medium- and long-term contracts.

Trade contracts with States, security of supply and import for certain products, etc. These are agreements on tariff concessions such as domestic tariff concessions and non-tariff concessions Twenty-six countries were selected from the sample and grouped into six blocks. The blocs (number of countries in parentheses) were South Asia (7), NAFTA (3), ASEAN (10), plus 3 (4), the EU and the rest of the world. Trade data were taken from the COMTRADE database and tariff information from the train set for the period 1988-2004.21 All statistics were used in aggregate form (SITC 1) Rev3, with the weighted average of tariffs constructed accordingly and the nominal variables deflated by the US GDP deflator. Instead of most-favoured-nation rights, real barriers to current trade flows have been used, with the former including existing preferential rates between countries. The use of this series has the potential to avoid a significant reduction in estimates based on dummy variables, as they “do not distinguish the extent of multilateral trade liberalization” (World Bank, 2004); However, at its current stage, the dataset provides imperfect coverage of existing RTAs (Dimaranan, 2002). . . . .

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