The SAPTA agreement, which stands for the South Asian Preferential Trade Agreement, came into force on December 7, 1995. It was signed between the members of the South Asian Association for Regional Cooperation (SAARC) in order to promote trade liberalization and economic cooperation within the South Asian region.
The agreement established a framework for the establishment of a free trade area among the member states, including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The aim of the agreement was to reduce trade barriers and increase trade among the member states, with the goal of boosting economic growth and development in the region.
Under the SAPTA agreement, member states agreed to gradually reduce tariffs on goods traded between them, with the aim of eventually achieving a free trade area. The agreement also provided for the creation of a dispute settlement mechanism to resolve any trade disputes that might arise between member states.
While the SAPTA agreement did not achieve all of its goals, it did provide a foundation for increased economic cooperation and trade among the member states. In 2004, the agreement was superseded by the South Asian Free Trade Area (SAFTA) agreement, which built upon the principles of SAPTA and expanded the scope of trade liberalization within the region.
Today, the South Asian region remains one of the world`s most important economic regions, with a combined GDP of over $3.5 trillion and a population of more than 1.8 billion people. While there are still many challenges to be overcome in terms of trade and economic development, the SAPTA agreement and its successors have provided a framework for continued cooperation and progress within the region.
