Intra-regional trade continues to account for less than 5% of formal trade of the eight member countries. South Asian Free Trade Area (SAFTA) results to date have fallen short of expectations due to complex safeguard measures and non-tariff barriers (NTBs) among South Asian Association for Regional Cooperation (SAARC) member countries. Global, regional and domestic turbulences have also complicated progress in liberalizing trade, investment and other dimensions of regional economic cooperation. Nonetheless, there has been progress and relationships among SAARC countries have improved.
ADB supported Phase I of the SAARC Study on Regional Economic Integration (REI) which proposed approaches towards achieving REI through four pillars, namely market integration, cross-border connectivity, energy cooperation and private sector liberalization.
The Second Phase of the study is to provide a detailed road map for a South Asian Economic Union along with identification of specific priority steps to be taken under each stage of regional economic integration and quantification of potential gains from various phases of regional economic integration on priority sectors.
- Acknowledgments
- Background
- Genesis of SAEU
- Goals, General Objectives, and Terms of Reference
- Overview of Intra-Regional Trade in South Asia
- Recommendations
- Conclusion
- Appendix: Action Plan Recommended in the Study