Advantages of South Asian Preferential Trade Agreement (SAPTA)
South Asian Preferential Trade Agreement (SAPTA) agreement was foamed to gain the business facility from the member countries of SAARC. The main objective of SAPTA agreement was to reduce the trade barriers of the member countries of SAARC. As a result the balance of trade of this region is reduced. Member countries get some advantages by the agreement of SAPTA like:
- Member countries of SAARC give the advantages to create proper business environment.
- If any country faces problem for balance of payment then SAPTA facilitates them.
- This agreement develops communication, infrastructural and transit facilities.
- By periodical review of this agreement identities the success and failure of the member countries.
- This agreement tries to increase the export.
- Under developed countries get the facility to export the goods and services to the developed countries by lower tax farcicalities.
- Member countries receive joint project.
- Member comities an gat the information and exchange it.
So like other regional agreement EU, NAFTA, ASEAN, SAPTA give these facilities. This agreement tries to reduce the trade and non trade barriers of member countries. By this agreement a goods relation among the member countries are created, free trade policy is established to reduce the barriers of the business. Other information about business, tax rate is exchanged among the member countries.