Saarc Summit concludes with pacts on free trade

The eight-nation Saarc Summit today reached a series of agreements on regional cooperation and decided to consider reducing non-tariff barriers and ad valorem duties to promote freer trade.

The announcement on the agreements was made by Maldivian President Mohammad Nasheed in the concluding session of the two-day 17th Saarc Summit, which was held for the first time in Maldives.

Nasheed said it was agreed at the summit agreed the Saarc Ministerial Council would work on reducing non-tariff barriers and ad valorem duties to promote trade in the region. In this context, Nasheed welcomed Prime Minister Manmohan Singh's announcement yesterday of India's decision to slash the sensitive list for least developed countries under South Asian Free Trade Agreement, reducing it from 480 tariff lines to just 25. Singh had also said zero basic customs duty access would be given for all the items removed, with immediate effect.

The Maldivian President said the summit also mandated the finance ministers to discuss a mechanism to promote capital flows and investment.

At the summit, which had 'Building Bridges' as its theme, it was agreed to move ahead on a regional railways agreement and a motor-vehicle pact to make travel between Saarc nations easier.

The setting up of a South Asian Postal Union, with its secretariat in India, was also agreed upon. On security issues, the eight-nation group agreed on rapid response to natural disasters and combating maritime piracy.