labels: economy - general
India may open up market for least developed among SAARC news
20 March 2007

Mumbai: The government is working on a package that would offer the least developed countries of South Asia increased access to India's markets.

The prime minister's office will soon convene a meeting to finalise the package, which is likely to be announced at South Asian Association for Regional Cooperation (SAARC) summit in New Delhi in April.

The package, which is in line with India's commitment to reduce duties under the South Asia Free Trade Arrangement (SAFTA), is expected to benefit countries like Bangladesh, Maldives, Nepal and Bhutan.

Under the SAFTA, the three non-LDC members – India, Sri Lanka and Pakistan - are required to bring their duties to less than five per cent in three years.

India is also working on a similar package for a wider group of LDCs under the World Trade Organisation (WTO).

India's trade with SAARC is worth just seven billion dollars against the country's overall global merchandise trade of over $300 billion and a reduction in duties offered to these countries would not in any way harm the country's economic interests.

SAARC heads of state gather in New Delhi for the 14th summit meeting. Formed in 1985, SAARC has India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives as its members. It has been delayed once, but looks likely to be held at this new April date.

The SAARC Council of Ministers will meet on Apr 2 in New Delhi to fine-tune the agenda.
In recent years annual summits were delayed because of tense relations between India and Pakistan and deteriorating security environment in Bangladesh and Nepal.

The recent events have brought much stability in Nepal and Bangladesh.

The last summit was held in Dhaka in November 2005. It was postponed twice, first time due to the tsunami disaster and later because of India's reluctance to share a platform with Nepal's King Gyandendra and terrorist strikes in Bangladesh.

The New Delhi Summit would be a major watershed for this two-decades-old South Asian grouping. Afghanistan joins as a full member to herald the country's assimilation in the world community. United States, China, Japan and South Korea are to attend as observers - a sign that world leaders are taking interest in SAARC.

 


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India may open up market for least developed among SAARC