India and the European Union are set to announce on January 27 the conclusion of negotiations and finalisation of a free trade agreement, which is aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs, an official said.
Voicing concern over Pakistan's non-implementation of South Asian Free Trade Area, the government said on Tuesday the effect of Islamabad's notification was limited to tariff concessions for India on items in the positive list.
In an apparent move to counter India's offensive over Pakistan's non implementation of SAFTA, Islamabad has charged New Delhi with not reducing tariffs on 350 items for itself and other nations falling under the Not Least Developed Countries.
South Asia Free Trade Agreement will come into effect from January 2006, Lok Sabha was informed on Tuesday.\n\n
Domestic exporters on Monday expressed concerns over the crisis in Bangladesh and said the developments in the neighbouring country would have implications on bilateral trade. However, exporters expect that the situation may normalise soon. According to exporters, they are already facing disruptions in exports to Bangladesh due to a shortage of foreign exchange in that country.
In a major effort to promote regional trade, India and six other South Asian countries have finalised the agreement on free trade area, which will come into effect from January 1.
Holding Pakistan responsible for South Asian Association for Regional Cooperation's 'underperformance', India has said the bloc was nowhere near achieving its potential.
The leaders also adopted the Islamabad Declaration for the SAARC summit.
A high-powered inter-ministerial committee was expected to finalise the list based on the suggestions and recommendations from different chambers, business houses and trade experts, the Daily Star newspaper reported.
The government on Wednesday said that the South Asia Free Trade Area Agreement that envisages phased tariff liberalisation will come into force from January 1, 2006.
With the Saarc countries looking resolved to create a South Asian Free Trade Area by 2006, Indian tea industry, hit hard by depressed global prices, has never been closer to bagging the big Pakistani market.
Sushma Swaraj urged the SAARC nations to focus on culture, commerce and connectivity.
The Federation of Indian Chambers of Commerce and Industry is 'very hopeful' that the seven SAARC nations would be able to clear all roadblocks on the way to signing of Saarc Free Trade Agreement (SAFTA) at the Islamabad summit.
In a phased and planned manner the countries will go for Free Trade Areas, a Customs Union, a Common Market, and a Common Economic and Monetary Union.
The 20-point Addu Declaration clearly indicates the role India plays in shaping SAARC's agenda. Prasanna D Zore reports.
India slashes sensitive list for LDCs under SAFTA.
The two leaders also agreed that bilateral trade will be conducted on Most Favoured Nation basis.
India on Wednesday asked its South Asian neighbours to increase intra-regional trade as a cushion against slowdown in exports to the US and European markets.
India is keen on removing trade barriers with Saarc nations and improving trade.
The former chief minister defended his demand for troop reduction from the state saying that army was no answer to the present situation in the state and it could be well resolved within the ambit of political dialogue.
India and other Saarc countries have decided to work towards creation of a South Asian Economic Union and establishment of a regional food bank.
The talks for normalising trade had begun in November 2011.
India has decided to bring down duty level to zero per cent on 4,200 items from Bangladesh in three years from the current level of 12 to 20 per cent as a special gesture
Despite being a neighbour, Pakistan has never accounted for more than 2 per cent of India's total exports, and its share in India's total imports is less than 1 per cent. On the other hand, bilateral trade between India and Bangladesh has increased five times.
The existing SAARC Development Fund could be merged into the bank.
'It seems a wiser decision to pull out at the right moment than regret after joining the pact,' explains Dr Rahul Mishra.
Currently, India imposes 30-45 per cent duty on textile products from Pakistan.
India on Thursday pitched for unleashing the "collective strength" of the South Asian Association for Regional Cooperation as External Affairs Minister Sushma Swaraj underlined the need for a South Asian Economic Union with greater connectivity and forward movement on pending agreements on rail and motor vehicles.
The compulsions of domestic politics notwithstanding, India and Bangladesh script a new story in bilateral relations, say Nayanima Basu and Aditi Phadnis
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