For Regional Trade
THOUGH the real, discernible growth in intra-SAARC trade and investment may come about
only after a significant measure is in place like SAARC Free Trade Area (SAFTA) as called
for by successive SAARC summits, activities like holding regional trade fairs do
contribute in their own ways to explore possibilities for boosting regional trade and
investment. The SAARC trade fair after being held one each in New Delhi, Islamabad and
Dhaka over the past years has come to Nepal. The Fourth SAARC Trade Fair is being held in
Kathmandu from October 25 to 29 where six of the seven South Asian countries, except the
Maldives, are participating. Such fairs do hold significance in promoting intra-regional
trade and investment with the lofty goal of higher economic growth in the region,
especially when moves towards SAFTA seem to be time-consuming. To recall, the 11th SAARC
summit held in Kathmandu in January earlier this year had instructed the governments to
chalk out a framework for SAFTA before the next summit to be held in Islamabad in 2003. It
is easy to imagine how far we may be away from a SAFTA reality when the formulation of the
framework itself takes such a long time. The proposed framework will finally be discussed
on October 26 and 27 in Kathmandu when SAARC commerce secretaries meet. SAFTA is an
important goal to strive for because it is meant to be a lot more in terms of promise to
expand regional trade which SAPTA, the South Asian Preferential Trading Arrangement, in
place since the past seven years has not been able to do satisfactorily. Though there are
some 5,500 plus products given preferential treatment under SAPTA, only 200 products so
far are able to benefit from this trade regime.
Given this background, there is an urgent need
for the governments, traders and businessmen in the region to come together to explore
ways to expand the trade even under the present systems. In this connection, the coming
trade fair could be an avenue to make such an exploration. The fair, according to the
Ministry of Industry, Commerce and Supplies, will have more than 200 exhibitors who will
display various products such as machinery, vehicles, agricultural handicraft products and
so on. Traders and investors of the six countries have an opportunity to foster mutual
relations and seek ways to strengthen the trade and investment ties. But, all said, the
benefits to an appreciable degree will come towards the least developed countries of the
region only when the larger trading nations in the SAARC conclave viz. India and Pakistan
become large-hearted. That fact should not be lost sight of when SAARC nations
collectively strive to put in place a SAFTA framwork.
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