Leaders of India, Pakistan and five other South Asian nations signed a draft agreement vowing to slash trade barriers starting from 2006, to boost growth in a region that is home to half the world's poor.
South Asian Association for Regional Cooperation countries, which also include Sri Lanka, Nepal, Bangladesh, Bhutan and the Maldives, also agreed to all but eliminate tariffs by 2016. That would bring to fruition the idea of a South Asian Free Trade Agreement that was envisaged in 1985, when the group was formed.
South Asia, home to a quarter of the world's people, is moving to emulate ASEAN and the EU. Trade between ASEAN nations makes up 63 percent of Southeast Asia's trade and intra-EU trade accounts for two-thirds of the trade of the 15 EU countries.
Trade among South Asian countries, 70 percent dominated by India, is barely 5 percent of the region's total.
"We have finally come to accept that if we do not close ranks our peoples will sink deeper into poverty and our countries will continue to suffer the consequences of discord and weakness in the fiercely competitive world," Bhutan's Prime Minister Lyonpo Jigmi Thinley said.
The signing ceremony, broadcast by Pakistan Television, came at the end of 12th SAARC summit in Pakistan's capital, Islamabad.
Under the planned trade agreement India, Pakistan and Sri Lanka, the region's largest economies, have until the end of 2012 to reduce tariffs to between zero and 5 percent.
Bangladesh, Bhutan, Nepal and the Maldives have until 2016.
Each country will be able to maintain a "sensitive list" of products on which tariffs won't be reduced.
"The accord will open up markets such as Pakistan that are not available today," said Sanjiv Bajaj, vice-president in charge of finance at Bajaj Auto Ltd, India's No. 2 motorcycle maker. "With duties coming down, our products would be cheaper in the other countries like Bangladesh."
Trade among the seven countries, home to more than 1.5 billion people, is an annual US$4 billion and may rise to US$14 billion once restrictions are removed, the Federation of Indian Chambers of Commerce and Industry estimates.
India has a free-trade agreement with Sri Lanka and open borders with Bhutan and Nepal, while Pakistan is negotiating free-trade deals with Sri Lanka and Bangladesh.
TRAGEDY STRIKES TAIPEI: The suspect died after falling off a building after he threw smoke grenades into Taipei Main Station and went on a killing spree in Zhongshan A 27-year-old suspect allegedly threw smoke grenades in Taipei Main Station and then proceeded to Zhongshan MRT Station in a random killing spree that resulted in the death of the suspect and two other civilians, and seven injured, including one in critical condition, as of press time last night. The suspect, identified as a man surnamed Chang Wen (張文), allegedly began the attack at Taipei Main Station, the Taipei Fire Department said, adding that it received a report at 5:24pm that smoke grenades had been thrown in the station. One man in his 50s was rushed to hospital after a cardiac arrest
SAFETY FIRST: Double the number of police were deployed at the Taipei Marathon, while other cities released plans to bolster public event safety Authorities across Taiwan have stepped up security measures ahead of Christmas and New Year events, following a knife and smoke bomb attack in Taipei on Friday that left four people dead and 11 injured. In a bid to prevent potential copycat incidents, police deployments have been expanded for large gatherings, transport hubs, and other crowded public spaces, according to official statements from police and city authorities. Taipei Mayor Chiang Wan-an (蔣萬安) said the city has “comprehensively raised security readiness” in crowded areas, increased police deployments with armed officers, and intensified patrols during weekends and nighttime hours. For large-scale events, security checkpoints and explosives
PUBLIC SAFETY: The premier said that security would be tightened in transport hubs, while President Lai commended the public for their bravery The government is to deploy more police, including rapid response units, in crowded public areas to ensure a swift response to any threats, President William Lai (賴清德) said yesterday after a knife attack killed three people and injured 11 in Taipei the previous day. Lai made the remarks following a briefing by the National Police Agency on the progress of the investigation, saying that the attack underscored the importance of cooperation in public security between the central and local governments. The attack unfolded in the early evening on Friday around Taipei Main Station’s M7 exit and later near the Taipei MRT’s Zhongshan
ON ALERT: Taiwan’s partners would issue warnings if China attempted to use Interpol to target Taiwanese, and the global body has mechanisms to prevent it, an official said China has stationed two to four people specializing in Taiwan affairs at its embassies in several democratic countries to monitor and harass Taiwanese, actions that the host nations would not tolerate, National Security Bureau (NSB) Director-General Tsai Ming-yen (蔡明彥) said yesterday. Tsai made the comments at a meeting of the legislature’s Foreign Affairs and National Defense Committee, which asked him and Minister of National Defense Wellington Koo (顧立雄) to report on potential conflicts in the Taiwan Strait and military preparedness. Democratic Progressive Party (DPP) Legislator Michelle Lin (林楚茵) expressed concern that Beijing has posted personnel from China’s Taiwan Affairs Office to its
RSS