The Sri Lankan government has ratified the South Asian Free Trade Area (Safta) agreement to pave the way for free trade of goods among the seven members of the South Asian Association for Regional Co-operation (Saarc).
Sri Lankan Minister of Information and Media Anura Yapa made this announcement in Colombo Thursday, according to press reports. Yapa added that some of the provisions may require ratification in the Lankan parliament but "other things can be just gazetted."
All Saarc members apart from Pakistan have ratified the agreement that legally came into effect on January 1, 2006.
Under the agreement, developing countries -- India, Pakistan and Sri Lanka -- will bring down their customs duties to 0 to 5 percent by the year 2013 while least developed countries (LDCs) -- Bangladesh, the Maldives, Nepal and Bhutan -- are expected to do so by 2018.
Pakistan cabinet is expected to ratify the Safta agreement this month.
Asian Tribune, quoting an official of the Ministry of Commerce in Pakistan, said a summary to this effect has already been submitted to the cabinet secretariat, and it is likely to be taken up at the special cabinet meeting for approval.
Pakistan Prime Minister Shaukat Aziz will chair the special meeting to be held soon.
The Saarc member states shall reduce their tariffs through a trade liberalisation programme that will be implemented in two phases.
In the first phase, Pakistan and India will reduce tariffs to 0-5 percent by 2013, Sri Lanka by 2016 and the four LDCs of Saarc by 2018. Pakistan, India and Sri Lanka will, however, complete their trade liberalisation programme for the four LDCs within 2009.
