Saarc Free Trade Plan Stalled

The summit of the South Asian Association for Regional Cooperation, which ended yesterday, pushed back the schedule for establishing a free trade area in south Asia beyond the 2001 deadline that the previous summit at Male last year, had set.

It didn't pull back the target to 2008, though, as a group of eminent persons which the Male summit appointed had suggested. Yesterday's declaration said the seven heads of government ``emphasised the importance of finalising the text of regulatory framework (for SAFTA) by the year 2001."

They also decided that an Experts Commmittee be set up with specific terms of reference to draft a treaty, including time-frames for freeing trade, measures to facilitate trade and to ensure an equitable distribution of trade among members. The declaration called for an immediate end to sanctions, expressing `abhorrence over the practice of imposition of unilateral coercive economic measures as an instrument of policy against developing countries.''

A large part of the declaration focussed on the advantages of liberalisation, trade, joint ventures and services such as tourism.

It noted SAARC's commitment to taking joint positions at international for a such as the World Trade Organisation. The text as less upbeat about liberalisation and globalisation than Prime Minister Atal Bihari Vajpayee's opening statement at the summit had been. It noted that ``the benefits of the so described ``liberalisation''have been disappointingly asymmetrical with the process proceeding at much slower pace in areas of special interest to developing countries.'' On disarmament, the declaration stuck to the established position, calling for the Conference on Disarmament ``to commence negotiations on a comprehensive, universal and non-discriminatory international instrument prohibiting the use or the threat of nuclear weapons as well as eliminating such weapons in existing arsenals.''