The Pros And Cons Of SAPTA

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In today’s increasingly globalized world, regional associations play a fundamental role in promoting peace and security within as well as between the countries. However, these regional organisations may have to encounter criticism on several grounds as well. The arguments which go against the optimistic view of the regional association includes lack of sources among the regions or the political differences between the neighbours that could restrict any efforts made towards reconciliation. Despite the drawbacks, most of the countries prefer to enter into a regional cooperation wherein the members agree to offer a preferential treatment to one and another in the hope of developing together. According to Dr. Kheffens(1988), “A regional arrangement…show more content…
In order to produce more the member countries should have identified the existing production capabilities of the region and matched them with each member nation’s demand pattern to determine the magnitude of future trade potential. Similarly, for effective resource mobilization the countries would need to resolve the regional disputes and aid each other to achieve self-sufficiency. Having failed to engage in a deeper study of aspects that could be beneficial for the members, the volume of intra-regional trade increased only marginally which did not meet the purpose of…show more content…
The success of SAFTA is a questionable issue as it has not been able to do much for the economic integration and neither has it been enable to enhance the trade considerably. This agreement contains certain limitations, such as the restrictive rules of origin, port restrictions and product coverage. The port-specific restrictions have increased transactions costs of trading across border, and sometimes led to a virtual blockage of imports between the SAARC countries. In addition to the above point, SAFTA it allows the member countries to retain sensitive lists of commodities and services that are out of the concessional ambit. This negative list is often held accountable for the lower volume of intra-regional trade between the countries and limits the scope of achieving a free trade regime. Further, most of the developed economies of the region prefer to trade with the rest of the world while the lesser developed economies mostly rely on the intra-regional trade. These dominant economies maintain highest most favoured nation tariffs within the region as compared to other markets. Therefore, the potential gains have been
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