1. SAARC regional economic Integration
Presentation
SAARC regional economic Integration
SAFTA and its Cost of Bangladesh and benefits of India

2. Course Code : BUS - 322 Course Title : International Business
Submitted By
Md. Moydul Islam

3. Regional Economic Integration
trade unification
partial or full
abolishing of customs tariffs on trade
within the borders

4. SAARC South Asian Association for Regional corporation
Established 8 December 1985
Bangladesh, India, Pakistan, Sri lanka, Bhutan, Maldives and Nepal
Afghanistan got membership on in April 2007 (Fourteenth SAARC Summit )
China, Japan, Republic of Korea, USA, Iran, Mauritius, Australia, Myanmar and the European Union have joined SAARC as Observers.(Until 2009 )

5. Regional economic Integration in SAARC
SAFTA
(south Asian Free Trade Agreement)
Proposed FTA (8 countries)
Agreement signed on 6 January 2004 (Twelfth SAARC Summit)
Entered into forced 1st January 2006.
TLP begins1st July 2006

6. Objectives of SAFTA Eliminate barriers Promoting fair competition
Creating effective mechanism
Establishing a framework

7. Regional economic Integration in SAARC (contd)
Instruments of SAFTA
1. Trade Liberalization Program
2. Rules of Origin
3. Institutional Arrangements
4. Consultations and Dispute Settlement Procedures
5. Safeguard Measures
6. Any other instrument that may be agreed upon.

8. SAFTA and Cost of Bangladesh
Tariff peaks
Non-tariff measures
Rules of Origin
Negative lists
Revenue compensation
Investment corporation

9. SAFTA and Benefits of India
Greater market access of each other’s products
Attainment of more economies of scale
More FDI attraction in all the countries
Facilitation of joint venture as well as technology transfer
Greater consumer satisfaction with low price index
Better exploitation economic complementarities
Infusion of dynamism and impetus to holistic economic development effort

10. Conclusion
regional integration has the potential to promote economic development
This potential can be exploited only through deeper cooperation.
there are a number of challenges which restrict this region to tap its potential.
concept of SAARC for regional cooperation will only be materialized when political autonomy and mutual trust will prevail.
several factors combine to make a negative case for a viable free trade agreement in the short-term.
reasonable case exists for the creation and gradual strengthening of SAFTA, as there are few benefits to dwelling on historical ill will
economies grow and economic complementarities begin to develop, the countries of South Asia may find that SAFTA can offer a potentially significant contribution to their progress.

11. Thank you