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FICCI lobbying for free trade agreement among SAARC nations

Ignoring the Indo-Pak political chill, a high-level FICCI (Federation of Indian Chambers of Commerce and Industry) delegation is currently lobbying hard at the SAARC (South Asian Association For Regional Cooperation) summit for pushing forward the process of regional economic co-operation to a free trade agreement among the member countries.

The delegation feels that a concrete move shall be made with a time-bound plan for achieving signing of a treaty for SAFTA (South Asian Free Trade Area) by the year-end as being planned by the regional grouping when the summit ends on Sunday.

FICCI President R S Lodha told reporters that SAFTA, which may be achieved over a period of five to seven years, shall truly lead to the SAARC economic integration in future.

Mindful of the difficulties and roadblocks ahead in view of the current Indo-Pak tension, he hoped it was only a temporary phase that would pass over.

The economic compulsions and the global trade pressure would ultimately force the SAARC take the pragmatic road of free trade area, he added.

Lodha said any further deterioration in relation between India and Pakistan at official level shall lead to the further lowering of an already dismal official ($200 million) trade between the two countries.

FICCI fears that it might increase the unofficial trade both illegal and third country trade, which was already estimated at 5 to 6 times the official figures.

He said while FICCI was fully with the government in its fight against terrorism, it hoped that recent positive moves by both the governments shall open windows of opportunities even in the present political milieu.

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