News: DRI busted a network falsely declaring Southeast Asian areca nuts as Bangladeshi to illegally claim concessional customs duty benefits under SAFTA.

ABOUT

• SAFTA = South Asian Free Trade Area.
• It is the free trade arrangement of SAARC.
• Aims to reduce trade barriers and promote economic cooperation among South Asian countries.
• Came into force in 2006.
• Succeeded SAPTA (1993).

Member Countries

• 8 SAARC countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Objectives

• Reduce trade barriers and facilitate movement of goods.
• Promote fair competition and equitable benefits.
• Create mechanisms for implementation and dispute settlement.
• Promote greater regional economic cooperation.

Special Treatment for LDCs

• SAFTA recognises special and differential treatment for Least Developed Countries (LDCs).
• To ensure more equitable benefits considering differences in economic development.