SAFTA Niti

by Chanakya

The recent inconclusive talks in Nepal on SAFTA point out at South Asian mediocrity in thinking. While the whole world is moving towards forming formidable economic blocs, South Asia lags behind being bogged down on petty political issues. If Mexico and Canada can overlook politics over economics for NAFTA, and Euro can become a reality, why does South Asia need to be pinned downed by politics? 

Perhaps the South Asian spirit makes the best sense when outside South Asia. Bangladeshis operate Indian restaurants in London, a Nepali may find a store run by a Pakistani more homely than one operated by a Korean, and it is normal to find a Sri Lankan watching Indian movies. If the countries in South Asia like to progress globally, they should realize that the South Asian identity is more formidable than the identity of individual nations of South Asia. This substantiates the fact that being South Asian is apolitical and rises above the theory of the size of nations.

The best way to further the spirit of South Asia ahead is definitely that of taking the economic route. And what else would be more appropriate than SAFTA to forge ahead this relationship? Whether SAARC summits are held or not, is not that important, but it is important that the SAFTA talks are continued and the framework for economic relationships is established. The SAFTA nations have more than a fifth of the world’s population and if it can see the threat coming from China’s rapid economic growth, there is no other option but to face it unitedly. For any country of the South Asia the greatest markets lie within the region itself, and, unfortunately, while intra-region trade for NAFTA countries amounts to 55% of the total trade, for SAARC countries it is just 5%. There is tremendous potential to be exploited. There is definitely some leaves of experience to be taken from individual countries like Thailand or Malaysia and what has ASEAN done to the constituent member nations in South East Asia.

The forging ahead of alliances between nations has been the only way to create a barrier to the onslaught of globalization especially after WTO regime becomes fully operational. While it is important to iron out the issues in the agreement prior to its implementation, the nations should not look for a situation of perfection. At this point in time what is important to have is a good agreement, which may not necessarily be a perfect agreement. Problems that may arise later can be ironed out whenever they arise. The early adoption of the treaty would definitely increase the credibility of the agreement as well as demonstrating the seriousness of each nation towards it.

For Nepal, it would be better to stop not making any comment at meetings. It would be still better to think of a real Niti to expedite SAFTA. Nepali trade and business can only flourish if the territory of their operations is expanded. This means, Nepali businesses will have access to the resources as well as the markets of South Asia. Nepal also needs to consider its strengths. For instance, electricity should be an element of trade as Nepal can access the entire power hungry markets of South Asia with the hydropower that it can generate. Similarly, tourism services should also be included in it for Nepali rafting companies to operate in the hills of India or climbing agencies to operate in the mountains of Pakistan. Nepali businesses should also be prepared to examine the issues and have a more proactive role. The Nepali role in SAARC Chamber of Commerce has to increase and this body needs to be active in pushing ahead the SAFTA agenda.