From American International University-Bangladesh(AIUB)

3. SAARC- Introduction
 Established in 8th
December 1985 at Dhaka
 Formed by 8 Countries
 Afghanistan Became it’s 8th
member in April, 2007
 Headquarters- Nepal
 Secretary- Dr.Sheel Kant Sharma

4. IntroductionEstablished in 8th
December 1985 at Dhaka
Formed by 8 Countries
Afghanistan Became it’s 8th
member in April, 2007
Headquarters- Nepal
Secretary- Dr.Sheel Kant Sharma

6. Potential Future Members
 China has expressed interest in upgrading its status from
an observer to a full member of SAARC. Supported by
Pakistan, Bangladesh, Nepal, Maldives, Sri Lanka.
 Myanmar has expressed interest in upgrading its status
from an observer to a full member of SAARC.
 Russia has expressed interest in becoming an observer of
SAARC. Supported By India.
 South Africa has participated in meetings

7. Background
The first concrete proposal for establishing a framework for
regional cooperation in South Asia was made by the late
president of Bangladesh, Ziaur Rahman, on May 2, 1980.
The foreign ministers of the seven countries met for the first
time in Colombo in April 1981.
The Committee of the Whole, which met in Colombo in August
1985, identified five broad areas for regional cooperation.
In 2007 Afghanistan was added as SAARC member.

8. REASONS FOR FORMATION OF SAARC
1. Central Location of Asia.
2. Common features of Indian Subcontinent.
3. All Countries gained independence after second world
war.
4. All countries have some cultural background & History.
5. All countries from part of the third world.
6. The region is poor & over populated.
7. Predominance of agriculture.
8. Dependence of the economy on southwest monsoon.

9. Objectives of SAARC
Primary Objectives
 Improve quality of life & welfare
of people.
 Economic, social & cultural
development.
 Contribute mutual trust &
understanding.
 Strengthen cooperation among
themselves & other Developing
countries.
 Cooperate on issue like water
resources.
Secondary Objectives
SAARC also looks in critical
Areas like Poverty, Education,
Culture, Sport’s & Arts.

11. Position and Extent of SAARC Countries
 Afghanistan in the north & Maldives In the South
 Pakistan in the West & Myanmar in the East
 The total area of Continent of Asia

14. Saarc Countries
INDIA
 Seventh Largest country.
 Second Most populous country.
 It is bounded by three sides by Arabian Sea (west), Ocean
(South) and Bay of Bengal (East).
 Shares Boundaries with Pakistan, Afghanistan, China, Nepal,
Bhutan, Myanmar & Bangladesh.

16. PAKISTAN
 The Islamic Republic.
 Divided into East & West Pakistan.
 Iran in the west and Afghanistan in the northwest.
 China in the north & India in the east & south east.
 It takes 30 Minutes behind the India Standard Time (IST).
 Has historical importance as all cultural.

18. SRILANKA
 Only 35 km from southernmost tip of mainland of India.
 Pear Shaped Island country.
 It follows Indian Standard Time.
 Surrounded by Indian ocean.
 A chain of sand-banks-called Adam’s bridge runs between
India & Srilanka.

20. BANGLADESH
 BANGLADESH formerly East Pakistan.
 Came into Existence in 1971.
 Almost surrounded by India on three sides-west, north and
east.
 It hares boundaries with Myanmar in the southeast.
 To the south lies Bay of Bengal.

22. NEPAL
The Kingdom of Nepal Also know as the Himalayan Kingdom.
Land locked country between India (east, south & west) and
China (south).
Follows Indian Standard Time.

24. BHUTAN
Small Land lock country in eastern Himalayan.
Located in India and China in the north and west.
Low population Density.

26. Maldives
One of the Smallest Nation in the World.
Smallest in Asia.
Divided into 19 administrative units.
Situated in Indian Ocean.
The water bodies cover more than 99% of the total area of the
country.

27. Trade and finance
The acceleration of economic growth is main objective of
SAARC.The following important process of SAARC are promoting
co operation in the field of trade, economy and finance.
- South Asia Free Trade Agreement
- SAARC Preferential Trading Agreement

29. SAFTA
• SAFTA was signed at the Islamabad summit in January 2004 to go into
effect from January 1, 2006.
• The SAFTA agreement would be fully implemented within December 31,
2016, in two phases.
• The members, under the trade liberalization programme, agreed that Non-
Least Developed States (NLDS) -including India, Pakistan and Sri Lanka
would reduce their tariffs from existing levels to 20% by January 1, 2008
in equal proportions annually.
• In case the tariffs would already be less than 20% when the agreement
comes into force on January 1, 2006, the NLDS should reduce the actual
tariff by 10% each during two years between January 1, 2006 to January 1,
2008.

30. SAFTA (Cont..)
• Therefore, under SAPTA, tariffs were reduced only for goods specified
in the agreement. Conversely, under SAFTA, tariffs will be reduced for
all products except those on each country’s sensitive list.
• It was also agreed that the four Least Developed Countries (LDCs), as
defined by the UN, including Bangladesh, Nepal, Maldives, Afghanistan
and Bhutan-will reduce their existing tariff rates to 30% within two years
after the agreement comes into force on January 1, 2006.
•If actual tariff rates in these four least developed member states are
already below 30% on January 1, 2006, the agreement comes into force,
there will be an annual reduction of 5% for each of the two years. That
will be the end of phase 1.

31. SAFTA (Cont.…)
 In phase 2, the NLDC members, with the exception of Sri
Lanka, will have to reduce their tariffs from 20% or
below, as may be the case, to 0-5% within five years by
January 1, 2013.
Sri Lanka, however, shall be given an additional year till
January 1, 2014, to reduce tariff to prescribed level of 0-
5%.
 The 4 LDC members, however, will be given 8 years
from January 1, 2008 to reduce tariff from 30% or below,
as may be the case, to 0-5% at par with the rest of the
SAARC member states.

32. Agreements
• Agreement for establishment of SAARC Arbitration Council
• Final Agreement on Avoidance of Double Taxation
• Final Agreement on Customs Matters
• CHARTER OF SDF 31 July 2008
• Agreement on establishing the SAARC food bank
• Agreement on south Asian Free Trade Area (SAFTA)
• Agreement on the Establishment of South Asian Regional Standards
Organisation (SARSO)
• Agreement on Avoidance of Double Taxation