COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Adopt SAFTA by 2001, SCCI urges SAARC

The SAARC Chamber of Commerce and Industry on Tuesday appealed to leaders not to postpone the goal of achieving a South Asian Free Trade Agreement beyond 2001 and work for setting up a south Asian economic community.

Presenting his report to the SAARC foreign ministers, SCCI president Kantikumar Podar said, ''If a decision is taken to postpone the goal of achieving SAFTA to any date beyond 2001, it will have serious negative implications.''

He said, ''Not only would it dampen the enthusiasm of the private sector but it would also undermine the credibility of announcements made at the highest levels.''

The SAARC leaders at their last summit in Male had committed themselves to achieving SAFTA by 2001. The Eminent Persons Group set up in Male, has, however, stated that the goal of achieving SAFTA by 2001 was impractical and it should be postponed until 2010.

Podar said tremendous enthusiasm had been created among all the seven countries over SAFTA.

''We hope that the Colombo summit will reiterate this objective to be achieved by 2001 and generate the desired momentum by outlining the step-wise approach to SAFTA within the given deadline of 2001. The SCCI has been expressing concerns at different fora for the lack of a time-bound action plan of transition from SAPTA to SAFTA.''

He said that in keeping with SAARC's efforts towards building the government and private sector partnership in achieving the objective of SAARC, the SCCI was presenting a 'road map to SAPTA' which was only a preliminary report and could be sharpened together with the governmental committees.

Podar said the world economic community was watching South Asia with keen interest. ''Efforts towards forming a unified economic market is the single largest attraction to the foreign investors today.''

However, he said the SCCI was warned at the delay in the third round negotiations under SAPTA and hoped that soon after this summit, these would be brought to a logical conclusion. ''It is strongly felt by us that the process of product-by-product trade negotiation is cumbersome and time-consuming and must be replaced by the sectoral or across-the-board tariff reduction.

Also inter-governmental agreement on SAFTA is required to be concluded between the seven countries immediately. Similarly, it is necessary to safeguard against the non-tariff barriers since they might nullify the benefits flowing out of tariff concessions.''

UNI