Academic literature on the topic 'South Asian Free Trade Area Treaty'

Among the members of South Asian Free Trade Area (SAFTA), India dominates in terms of its geographical location, land area, population size and economic share. However, SAFTA is treated as a weak agreement as India is highly outward oriented for trade. This raises a question about India’s trade compatibility with South Asian countries. Also since SAFTA is now fully implemented, there is a need to determine its welfare effects for India as well as for the region. The study focuses on (a) trends and patterns of India’s intra-regional trade with South Asian countries, (b) trade compatibility and (c) welfare effects of SAFTA for the Indian economy. India’s trade intensity, trade share and trade compatibility with the other regional members is calculated. GTAP simulations are used to determine welfare effects. The study is based upon the secondary data. The study finds that with the implementation of SAFTA, India’s trade intensity and trade share with its regional members has slightly improved. Trade compatibility though low, is gradually improving. The study considers SAFTA as a positive sum game for India. India is likely to have favourable allocative efficiency effect, terms of trade effect and investment-savings effect if trade facilitation measures are adopted. JEL Codes: F150, F10, F140, C150

Preferential trading is one of the mildest forms of an integrative arrangement. Under the arrangement, the Contracting States (CS) offer a preferential margin with respect to trade barriers in relation to their MFN rates. CS having disparate levels of development as well as trade regimes, find this an acceptable instrument for initiating regional trade liberalisation. Such an arrangement nevertheless provides the building blocks towards accelerated regional trade liberalisation culminating in a free trade area within a defined time frame. Under a free trade area the CS eliminate all trade restrictions on their mutual trade, while maintaining restrictions in their trade with non-CS at a level they deem appropriate. When all CS decide on a common external tariff, then the arrangement translates itself in a more cohesive customs union. The arrangement translates to a common market when all CS agree not only to allow free movement of goods and services, but all the factors of production including capital and labour. Finally, the most comprehensive form of an integrative arrangement results from an economic union, which integrates national economic policies of CS and leads to the adoption of a common currency. The Agreement on South Asian Preferential Trading Arrangement (SAPTA), which became operational since December 7th, 1995 thus, symbolises the beginnings of the very first stage of an integrative arrangement among the member countries of SAARC. The decision made at the Twelfth SAARC Summit at Islamabad in January 2004 to launch South Asian Free Trade Agreement (SAFTA) from January 2006 would mark the second stage of the process of integration in the region. The main focus of this paper is to assess the impact of SAPTA on Indo-Pak trade.

The world has witnessed formation of several regional economic cooperation in different parts of the world after the World War II The significant success in regional economic cooperation in different parts of the world has been reflected in formation of South Asian Association for Regional Cooperation (SAARC) in 1985 among seven countries of South Asia, namely Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. In any regional economic cooperation, trade is a key component SAARC is not exception to this. In 1995, they have established South Asian Preferential Trade Area (SAPTA). The idea of economic interdependence within the South Asian region had gained importance after formation of SAPTA, in particular. In the 8th SAARC Summit in 1995, the member countries have decided to form South Asian Free Trade Area (SAFTA) by the year 2005. Therefore, a quantitative economic analysis of any national economy within SAARC should allow its trade relation with member countries. In the present paper, we study the quantitative impact of duty free access to India s market for imports on SAARC countries.

This article analyses the causes of low intra-regional trade connections within South Asia, which have remained disappointing despite the long-awaited launch of the South Asian Free Trade Area (SAFTA) on 6 January 2004 in Islamabad. Analysis of World Bank data and other relevant sources for the period 1995–2018 shows that trade among SAFTA members has not increased as significantly as had been hoped. The statistical analysis undertaken confirms what was suspected by many observers, as it shows that the SAFTA countries are not actually natural trading partners. Rather they are often competitors, seeking to export the same product groups. Since this makes the prospects of future substantial increase in mutual trade unlikely, the article concludes with some reflections about how to strengthen regional trade support mechanisms.

Like many developing economies, the South Asian countries are opening-up their economies with a view to accelerating their economic growth through greater trade and investment. In this context, attempts have also been made to encourage regional trade under the aegis of the South Asian Association for Regional Cooperation (SAARC). In particular, the South Asian Preferential Trade Agreement (SAPTA) provides for reductions in tariffs and other restrictions on specific commodities on a reciprocal basis, and the eventual objective is to integrate the South Asian economies into a free trade area through SAFTA, which would come into force on January 1, 2006. However, despite greater attention on regional economic cooperation initiatives, there has been little progress in regional trade expansion: intra-regional trade continues to be minimal, not exceeding 5 percent of the total trade of the South Asian economies. This paper highlights the importance of regional economic integration in South Asia as elsewhere, spells out the factors which have so far hampered economic cooperation in the region, and outlines a future course of action to achieve greater economic integration in South Asia. Section 2 provides a broad perspective on regional economic integration with a particular focus on the need to foster greater economic cooperation in South Asia. Section 3 discusses the factors that have impeded intra-regional trade and economic ties within the region. Section 4 spells out measures to enhance economic cooperation in the SAARC region, while Section 5 concludes the discussion.

During last decade, the stalemate in multilateral trade negotiations under the framework of World Trade Organization (WTO) regime has provided impetus to the signing of regional trade agreements world over .South Asia is not an exception to this trend and has been involved in setting up its own bilateral and Regional Trade Agreements (RTAs). Most commonly cited cooperation agreements are Agreement on Trade and Commerce between India and Bhutan(1972), India-Nepal Bilateral Trade and Transit Treaties(1991), India–Sri Lanka Bilateral Free Trade Area(1998) Bangkok Agreement (1975), Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Cooperation (BIMST-EC-2004) and the Indian Ocean Rim Association of Regional Cooperation (IOR-ARC-1997). One of the most significant steps towards regional economic cooperation in the history of South Asian countries, was taken with signing of The South Asian Association for Regional Cooperation (SAARC) formed in 1985 with the objective of exploiting “accelerated economic growth, social progress and cultural development in the region” for the welfare of the peoples of South Asia. And then seven South Asian countries—Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka—initiated a framework for region-wide integration under the South Asian Preferential Trade Agreement (SAPTA) in 1995. In order to further cement the regional economic relations and overcome some impediments of SAPTA, the South Asia Free Trade Agreement (SAFTA) was signed in early 2004, which came into force on 1st July 2006. The SAFTA is a parallel initiative to the multilateral trade liberalization commitments of the South Asian Association for Regional Cooperation (SAARC) member countries. SAFTA aims to reduce tariffs for intraregional trade among the seven SAARC member countries. It has been agreed that for the South Asian countries, Pakistan and India will eliminate all tariffs by 2012, Sri Lanka by 2013 and Bangladesh, Bhutan, Maldives and Nepal by 2015. The current paper is an attempt in assessing the potential trade in the region with latest dataset with Gravity model approach.

India played a proactive role in determining the of South Asian Free Trade Area (SAFTA) due to its economic strength. This study highlights recent trends in Indias total trade relationship with SAFTA economies in general, and with each trade bloc members particularly during the period, from 2010 to 2019.The paper employs the compound annual growth ratetechnique to find out the growth rate of Indias exports and imports. Also, a trend analysis has been made on Indias exports and imports, total tradebalance of trade with south Asian countries. The trend shows that in general both imports and exports were increasing over time except a negative export and total trade balance with Pakistan and import trade balance with Maldives. Bhutan and Bangladesh were the leading trade partners of India in south asian region. However, depending up on the economic and political conditions of the trading countries exhibit a characteristic trend unique to their own country in trading with India.

At the dawn of democratic rule in the period 1994–1998, South Africa concluded 15 bilateral investment treaties (BITs), mostly with European nations. Some of these treaties were concluded before the Constitution of 1996. The country has since concluded a total of 47 BITs, with the majority not in effect as they were not ratified per the required constitutional processes. The policy decision to enter into BITs was taken by the African National Congress (ANC) government, led by the late former state president Nelson Mandela. The BITs were seen as an important guarantee to attract foreign investment into the country. The aim was to provide added assurance that foreign investments were safe in a democratic South Africa after many years of international isolation and sanctions. The conventional wisdom at the time was that BITs would increase foreign investor appetite to invest and the country would experience rising levels of foreign direct investment (FDI) as a result. This would facilitate economic growth and the transition of the country into the global economy. South Africa concluded BITs with seven of the top ten investor countries. In October 2013 the South African government cancelled a number of BITs with these European countries invested in South Africa. These countries – namely Belgium, Luxembourg, Spain, Switzerland, Germany and the Netherlands – complained of lack of consultation by the South Africans. On 1 November 2013 the Minister of Trade and Industry published, in Government Gazette No 36995, the Promotion and Protection of Investment Bill (PPIB or Investments Bill) as the proposed primary legislative instrument for the protection of foreign investments. This created much uncertainty among many European nations as well as in the United States of America (US), who were concerned about the motivation for cancelling bilateral treaties in favour of domestic legislation. BITs had been a part of the policy instruments regulating foreign investments in the country for over 20 years. Globally these treaties have been used to regulate foreign investments in a number of areas, and to provide protection to investments such as full protection and security, guaranteed pre-establishment rights, ease of repatriation of funds, most-favoured nation, fair and equitable treatment, national treatment and efficient dispute settlement mechanisms, among other provisions. In most cases international arbitration via the International Centre for the Settlement of Investment Disputes (ICSID) and other international arbitral mediums has been a standard provision in the treaties. This has allowed foreign investors to bypass host countries’ legal systems. The latter is believed to be a significant inducement for foreign investors, guaranteeing that should a dispute arise, or if an expropriation occurs, the investor could institute an international arbitral process against the host government. International arbitration is preferred by foreign investors for the reason that, in some cases, domestic courts may lack independence from the state, and may make partial rulings that do not protect investors. Furthermore, international arbitration processes are more efficient and produce rulings faster than domestic courts, which are usually burdened with bureaucratic procedures and limited resources. In cases where delay exacerbates injury, prompt resolution of disputes is preferable. This study evaluates the Investments Bill and the rationale applied by the government of South Africa to cancel BITs with major trade and investment partners in favour of this legislation. The thesis focuses on the Investments Bill, in light of the objective provided by the Department of Trade and Industry (DTI) for its enactment to law. The Investments Bill is subjected to a constitutional analysis to determine its compliance therewith. Comparisons are also made between the Investments Bill provisions and the prevailing international law principles on foreign investments. The Investments Bill is then critically evaluated against emerging trends on FDI regulation on the African continent to determine its congruence or lack thereof with best practice recommendations at regional economic community (REC) and African Union (AU) level. The thesis concludes with a set of policy recommendations to the DTI on how to improve South African policies related to the regulation of foreign investments taking into account the national imperative as well as Southern African Development Community (SADC) and other broader African continental objectives of harmonisation of FDI regulation, including the Tripartite Free Trade Area (FTA) implementation. The timing of this thesis is significant for South Africa. It adds to various deliberations that are taking place as the Investments Bill is set to makes its way through the legislative approval processes in 2015. The Bill has been met with opposition from some segments of society. Others have expressed support – including several state departments, the ANC, the South African Communist Party (SACP) and other political formations. The summary of findings contained in the thesis will be presented to the DTI to influence policy directions of the state in terms of foreign investment regulations. Should the Bill be enacted, the Minister of Trade and Industry is required to promulgate the dispute resolution mechanism that will govern investment disputes. The findings of this study will be important to the determination of how such dispute resolution mechanisms may function. Furthermore, in 2010 Cabinet instructed the DTI to develop a model new-generation BIT Template to be utilised by South Africa, should a compelling reason arise to enter into bilateral agreements. The research results will assist policy-makers to develop policies that are consistent with and align with the overarching Africa strategy that has been heavily promoted by South Africa. The country faces a number of challenges, particularly those related to low economic growth, high levels of poverty, unemployment and record levels of inequality. The gap between the rich and poor, in terms of the Gini coefficient, was 0,67 based on the World Bank Development Research Group Report of 2010. It is reported as one of the highest in the world and is believed to have worsened since the dawn of democracy.
Public, Constitutional and International Law
LL. D. (Public, Constitutional and International Law)

The regional economic community (REC) of the Southern African Development Community (SADC) compri'ses 15 Southern African countries. The' economic and political aspects of regional integration in SADC dictate the pace of integration while the influence of a legal regime for regional integration remains at the periphery. While the SADC Treaty and its Protocol on Trade are clear about the priority of economic integration; the full implementation of SADC's economic integration is still yet to be realised using these legal instruments. Regional economic integration is also a priority at both continental and global level. The legal instruments applicable at these levels are those established through the African Union (AU) and the World Trade Organisation (WTO) respectively. Analysis of these external legal instruments is relevant because SADC Member States are signatories to agreements establishing these organisations·. Thus, rules based trade in SADC should be understood from a regional, continental and global perspective where a community must have well-structured and managed relations between itself and other legal systems as a necessary condition for its effectiveness. These structured relations refers to a legal and institutional framework that defines the relations between community and national laws, spelling out the modalities for implementing community law in Member States, defines the respective competencies of the community and Member States and provide rule based systems for resolution of conflicts. In setting the scene for an in-depth discussion of the legal and institutional framework for regional economic integration in SADC, this study presents the history of SADC, its political and economic characteristics that have shaped the legal aspects of trade within the region, the continent of Africa and the world at large. Within this context, the definition of regional integration is presented from a general and international understanding but ultimately gets narrowed down to what it means for Africa and SADC. The discussion on the · theories behind regional economic integration gives understanding to the integration approach employed in the organisation. South Africa's economic and political leadership is critical in the realisation of economic integration; hence this study acknowledges that without South Africa's full commitment; regional economic integration will suffer .a setback. Besides the challenge of implementing rules based trade in SADC, this study also identifies a number of obstacles to SADC regional economic integration and multiple memberships are identified as a: major stumbling block. A comparative study of SADC's institutional framework with that of the E1;Jropean Union· (EU) is undertaken to establish the rationale behind SADC's choice of utilising the EU model of integration. This study establishes the critical role institutions play in the implementation of treaty obligations as established by the agreements. The main lesson from this comparative study is that the EU institutions are allowed to fulfill their obligations of implementing treaty provisions, while SADC institutions are handicapped. The future of SADC is presented within the context of a set of recommendations that identifies the tripartite free trade area (FTA) that includes the East Africa Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) as one of viable legal instrument for deeper integration in SADC and the continent of Africa. General recommendations are made on the need for reform of rules and principles that are necessary for the implementation of SADC Treaty regime as well as possible improvements that are important for the full realisation of regional economic integration.
PhD (Law), North-West University, Potchefstroom Campus, 2012