The agreement was signed in 2004 and came into force on 1 January 2006, with the wishes of ASAC Member States (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) to promote and maintain mutual trade and economic cooperation within the ASARC region by exchanging concessions. The South Asian Free Trade Area (SAFTA) is the free trade agreement of the South Asian Association for Regional Cooperation (SAARC). The agreement entered into force in 2006 and came into force with the 1993 ASAC preferential trade agreement. SAFTA`s signatory countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. 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. The creation of an intergovernmental group (IGG) to develop an agreement to establish a ZATA until 1997 was approved at the sixth ASAC Summit in Colombo in December 1991.
The main objective of the agreement is to promote competition in the region and to offer equitable benefits to the countries concerned. It must benefit the citizens of countries by bringing transparency and integrity between nations. SAFTA was also created to strengthen the level of trade and economic cooperation between ASARC states by reducing tariffs and trade barriers and to grant specific preferences to least developed countries (LDCs) within SAARC, nations.to create a framework for further regional cooperation. In accordance with the trade liberalization programme, States Parties must meet the following timetable for tariff reduction. Non-least developing countries should reduce the current tariff to 20% and reduce current tariffs in smaller developing countries by 30%. But the system of trade liberalization is not applicable to the sensitive list, since this list must be negotiated between the contracting countries and then negotiated. A sensitive list will include a common agreement between the States Parties in favour of the least developed States Parties. The SAFTA Council of Ministers (SMC) will participate to review the sensitive list every four years to reduce the list. The aim of SAFTA is to promote and increase common contracts between countries, such as medium- and long-term contracts. State-managed trade contracts, the supply and import insurance of certain products, etc. This is an agreement on tariff concessions such as national tariff concessions and non-tariff concessions I Terms and conditions To be favoured, products must: a) enter the schedule of TZA concessions in CENA: a) be a denomination for products that may be preferred in the TZA CT concession schedule; b) comply with SAFTA rules of origin.
Each item in a batch must apply to itself; and (c) meet the shipping requirements set out in the SAFTA rules of origin. As a general rule, products must be shipped directly from the export country to the destination country within the meaning of Article 12.