New Delhi : External Affairs Minister S M Krishna on Thursday called upon members of the South Asian Association for Regional Cooperation (SAARC) to utilise the “greater potential? of the forum in increasing intra-regional trade.
?It is time that the South Asian region takes adequate cognisance of the economies of the neighbourhood just as different regions across the world have adopted the strategy of regional economic integration to exploit the synergies for mutual benefit in a balanced and equitable manner,? he said.
Speaking here at the international conference marking the 25th anniversary of the organisation, Krishna pitched for adequate transport connectivity and infrastructure which he said were the main reasons for high transaction costs of trade.
?Efforts to negotiate regional Agreements on Motor Vehicles and Railways have […] not yet succeeded. Progress in these areas is critical for taking forward intra-regional economic cooperation,? he said.
However, he noted that the implementation of the South Asia Free Trade Agreement (SAFTA) in 2006 was a significant milestone in the efforts to bolster trade which resulted in the doubling of intra-regional trade in South Asia over the past 5 years.
?While estimates of intra-SAARC trade vary, it is fair to assume that this figure touched close to USD 550 million in 2009, increasing from just USD 10 million in 2006 when SAFTA came into force,? said the minister.
He also lauded the establishment of a South Asian University (SAU) in Delhi and said the USD 300 million undertaking, co-shared by SAARC Member States will provide world class education opportunities to the youth of South Asia.
He said what began as an ‘act of faith’ on December 8, 1985, when the Charter of SAARC was adopted by seven leaders of this region in Dhaka has come a long way in shaping regional economic cooperation and development in the face of multi-faceted challenges.
?As we mark this 25th Anniversary of the organisation, we should take stock of the progress achieved in a sober and realistic manner and seek to drawn lessons from the past,? said Krishna, reiterating SAARC?s main objective of promoting development and welfare in the region.