Objectives of South Asian Preferential Trade Agreement (SAPTA)
The main objective of the South Asian Preferential Trade Agreement (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. Like other regional agreement, SAFTA is a regional agreement and it has some objectives.
These objectives are:
- To reduce the trade barriers of the members contains of the SAPTA agreement.
- To ensure free movement of goods and services to the member countries of SAARC.
- To reduce the discrimination of businesses among the regions.
- To reduce the non trade barriers of the member countries of the SAPTA agreement.
- bGradual liberalization of trade among the SAARC members.
- Elimination of trade barriers among the SAARC nations. Especially; Tariff reduction.
- Promoting and sustaining trade and economic cooperation among the member nations of SAARC.
SAPTA would be improved gradually for the mutual benefit of all the practice in the product areas covering raw material. semi-finished goods and finished goods for mutual convenience.
SAPTA makes provision for information, consultation and dispute settlement. Least development countries such as Bhutan and Nepal among the members are given extra concessions. Members can withdraw from SAPTA by giving a 6 month notice.
So like ether regional integration SAPTA was formed to reduce the trade and non trade barriers of the member countries. Free trade activities are continued to obtain the Objectives of SAPTA. So SAPTA is very important agreement for the region of South Asia.