ASEAN's example

ASEAN's example

It is encouraging to see that ASEAN and China have signed an
accord to create the world's biggest free trade area by removing
tariffs for their two billion people by the decade's end.

This is a giant leap in their vision of building a trade bloc
to rival Europe and the U.S. ASEAN leaders had earlier signed a
pact to flesh out the agreement last year to create an ASEAN
community along the lines of a unified Europe by 2020.

It aims at creating a common market with common security
goals. November's accord will remove all tariffs by 2010, and is
part of a wider "plan of action" to develop cooperation in
politics, security, military affairs, transportation, information
technology and tourism. It will build on two-way trade and is
expected to surpass $100 billion this year.

In today's world regional economic grouping for cooperation
seems to be the general trend. South Asia needs to emulate this
example. Saarc countries have already taken a decision to begin
to implement the South Asian Free Trade Agreement from January 1,
2006.

Though Safta would benefit all member nations, in the
immediate context following the signing of the agreement the
primary beneficiaries will be India and Pakistan. So far, direct
trade between India and Pakistan has been very little.

No doubt, Safta will be advantageous for the region, but it
might face some hurdles in the way of its implementation. The
most important of it could be the failure of India and Pakistan
to resolve their disputes amicably.

Tension-free relations between India and Pakistan are a pre-
requisite for a successful trade treaty in South Asia. If the
region manages to implement the agreement as planned, it will
have a far-reaching economic and political impact which would be
largely positive. It could also turn out to be the most important
confidence-building measure in recent times in South Asia.
-- The Dawn, Karachi