Topics: South Asian Association for Regional Cooperation, Free trade area, International trade Pages: 7 (2224 words) Published: May 15, 2013
SAARC (South Asian Association for Regional Cooperation)
was established on December 8,1985 by seven countries of Asia named as Pakistan, Bhutan, Bangladesh, Maldives, India, andSri Lanka. This is an economic organization of eight countries of Southern Asia. SAARC is anevident of the determination of the people of South Asia to work together towards findingsolutions to their common problems in a spirit of friendship, trust and understanding and tocreate and order based on mutual respect, equity and shred benefits. The main purpose of thisassociation is to increase the progress of economic and social development in member states,through joint action in the agreed areas of cooperation. In April 3, 2007 Afghanistan became the8 th member. The people of its member countries are around 1.5 billion. In terms of population itssphere of influence .1(is an area or region over which a state or organization has significantcultural, economic, military or political influence) is largest of any regional organization. Theheadquarters of SAAC are Katmandu and Nepal. Chairman and secretary General are MahindaRajapaksa and Sheel Kant Sharma respectively. The GDP in 2005 was estimated as US$4074031 million and per capita US $ 2777.

 SAARC was adopted.
1.Cooperation within the framework of the ASSOCIATION shall be based on respect for the principles of sovereign equality, territorial integrity, political independence, non-interferencein the internal affairs of other States and mutual benefit. 2. Such cooperation shall not be a substitute for bilateral and multilateral cooperation but shallcomplement them. 3.Such cooperation shall not be inconsistent with bilateral and multilateral obligations

The objectives of the association in charter are:
4•Topromote the welfare of the people of South Asia and to improve their quality of life; •To accelerate economic growth, social progress and cultural development in theregion and to provide all individuals the opportunity to live in dignity and to realize their full potential; •To promote and strengthen collective self-reliance among the countries of South Asia; •To contribute to mutual trust, understanding and appreciation of one another's problems; •To promote active collaboration and mutual assistance in the economic, social,cultural, technical and scientific fields; •To strengthen cooperation with other developing countries ; •To strengthen cooperation among themselves in international forums on matters of common interest; and •To cooperate with international and regional organizations with similar aims and purposes.

In 1970 Ziaur Rehman president of Bangladesh presented an idea of creation of a trade bloc andthe member of this bloc would be the countries of South Asia. This idea was again presented inassembly in May 1980. In April 1981, the foreign secretaries of the member countries met for thefirst time in Colombo. The aim of this association is to promote the welfare of the people of themember countries through increased economic, social and cultural development. In 1983 in NewDelhi, the first summit meeting was held and the key agreement of saarc was Integrated Programof Action (IPA). The (IPA) agreed to cooperate on twelve areas: agriculture, rural development,meteorology, health, population activities, transport, postal services, scientific and technologicalcooperation, sports, arts and culture. At the 10th summit meeting held in 1998 in Colombo, SriLanka, the leaders of the member countries agreed to establish the SAARC Information Centre(SIC) which is located in Nepal as an information hub for SAARC countries. In January 2006 anagreement was signed (SAFTA) South Asia Free Trade Area which came into force replacing the(SAPTA) South Asia Preferential Trade Agreement enhancing integration process? Regionalcollaboration in finance, trade and investment was being pursued in order to establish (SAEU)South Asian Economic...
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