SAARC regional economic Integration

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Presentation transcript:

SAARC regional economic Integration Presentation SAARC regional economic Integration SAFTA and its Cost of Bangladesh and benefits of India

Course Code : BUS - 322 Course Title : International Business Submitted By Md. Moydul Islam

Regional Economic Integration trade unification partial or full abolishing of customs tariffs on trade within the borders

SAARC South Asian Association for Regional corporation Established 8 December 1985 Bangladesh, India, Pakistan, Sri lanka, Bhutan, Maldives and Nepal Afghanistan got membership on in April 2007 (Fourteenth SAARC Summit ) China, Japan, Republic of Korea, USA, Iran, Mauritius, Australia, Myanmar and the European Union have joined SAARC as Observers.(Until 2009 )

Regional economic Integration in SAARC SAFTA (south Asian Free Trade Agreement) Proposed FTA (8 countries) Agreement signed on 6 January 2004 (Twelfth SAARC Summit) Entered into forced 1st January 2006. TLP begins1st July 2006

Objectives of SAFTA Eliminate barriers Promoting fair competition Creating effective mechanism Establishing a framework

Regional economic Integration in SAARC (contd) Instruments of SAFTA 1. Trade Liberalization Program 2. Rules of Origin 3. Institutional Arrangements 4. Consultations and Dispute Settlement Procedures 5. Safeguard Measures 6. Any other instrument that may be agreed upon.

SAFTA and Cost of Bangladesh Tariff peaks Non-tariff measures Rules of Origin Negative lists Revenue compensation Investment corporation

SAFTA and Benefits of India Greater market access of each other’s products Attainment of more economies of scale More FDI attraction in all the countries Facilitation of joint venture as well as technology transfer Greater consumer satisfaction with low price index Better exploitation economic complementarities Infusion of dynamism and impetus to holistic economic development effort

Conclusion regional integration has the potential to promote economic development This potential can be exploited only through deeper cooperation. there are a number of challenges which restrict this region to tap its potential. concept of SAARC for regional cooperation will only be materialized when political autonomy and mutual trust will prevail. several factors combine to make a negative case for a viable free trade agreement in the short-term. reasonable case exists for the creation and gradual strengthening of SAFTA, as there are few benefits to dwelling on historical ill will economies grow and economic complementarities begin to develop, the countries of South Asia may find that SAFTA can offer a potentially significant contribution to their progress.

Thank you