presentaion on SAARC. international rade

1. SAARC

2. • During 19th and 20th century, international free trade termed as “Engine of
growth.”
• Trade liberalization has increased with the rise of regionalism.
• Trade liberalization and regional economic integration can help a region.
increase intra-regional trade by exploring the size of the market.
• Driven towards integration by the pressure of economic interest of the region,
seven South Asian countries- Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka formed the South Asian Association for Regional
Cooperation (SAARC) in 1985.
• Afghanistan joined in the year 2007 as the eighth country.
Trade Scenario - World

3. • SAARC is an organization of eight countries located in the South Asia and it
stands for the South Asian Association for Regional Cooperation.
• The Secretariat of this organization is located in the Kathmandu.
• 3% of the area of the world is represented by SAARC countries.
• It was founded as a movement toward collective progress for the involved
nations of South Asia.
• It is around 1.7 billion of the people and it is 21% of the world population.
IMPORTANCE ASPECTS

4. Symbol: The SAARC symbol depicts alliance, which is specifically respect for the
(a).Territorial integrity.
(b). Principles of sovereign equality
(c). Calm settlement of all conflicts.
Observer: SAARC currently has nine observers at its summits: China, the US,
Myanmar, Iran, Japan, South Korea, Australia, Mauritius and the European Union (EU).
Roles:
1. Representatives of the observer nations are allowed to sit and speak in the inaugural
and concluding sessions but not allowed to engage in negotiations, core discussion
or vote on matters discussed at summits.
2. The other role of observer states is to monitor the situation as they might have some
stake in the organisation ( USA, EU, Japan)

5. OBJECTIVES
• To improve the quality of life and welfare of the people of the SAARC
member countries.
• To develop the region economically, socially and culturally.
• To provide opportunity to people to live in dignity and exploit
potentialities.
• To enhance the self-reliance of the member countries jointly.
• To enhance mutual trust, understanding and application of one other’s
issue.
• To enhance mutual assistance in the area of social, economic, cultural,
scientific and technical fields.
• To enhance cooperation with developing countries.
• To have unity among issues regarding common interest.
• To extend cooperation to other trade blocks.
Source: P.Subba Rao (2008). International Business. Mumbai: Himalaya

6. The Council
Highest Policy-Making Body
Council of Ministers
Standing Committee
Programming Committee
Technical Committees
Organisational Structure of SAARC
Source: P.Subba Rao (2008). International Business. Mumbai: Himalaya
SAARC has no
institutional
mechanisms or
punishments
capable of
preventing or
fully resolving a
dispute.

7. SAARC Recognized bodies
• SAARC Chamber of Commerce & Industry (SCCI):- Its primary focus is on
the holistic growth of service sector and small & medium enterprises.
• SAARC LAW (South Asian Association for Regional Cooperation in Law):
The desire to establish an association within the SAARC region “to
disseminate information” and “promote an understanding of the concerns and
developments” prompted the birth of SAARCLAW in 1991.
• South Asian Federation of Accountants (SAFA): In 1984, this organization
came into existence with an objective of strengthening and serving the
accountancy profession in the South Asian Region.

8. • South Asia Foundation (SAF): A non-profit and non-political
organization founded by UNESCO Goodwill Ambassador Madanjeet
Singh in 2000 .
• South Asia Initiative to End Violence Against Children (SAIEVAC):
Found in 2005, this regional forum aims at “ending all forms of violence
against children in South Asia.”
• Foundation of SAARC Writers and Literature (FOSWAL): It’s the first
non-government organization working towards nurturing and
strengthening cultural connectivity through interactions among SAARC
nations.
SAARC Recognized bodies

9. LOCATION COUNTRY
Agriculture centre SAC Dhaka Bangladesh
Meteorological Research Centre SMRC Dhaka Bangladesh
Tuberculosis and HIV/AIDS Centre STAC Khatmandu Nepal
Documentation Centre SDC New Delhi India
Human Resource Development Centre SHRDC Islamabad pakistan
Coastal Zone Management Centre SCZMC Male Maldives
Information Centre SIC Khatmandu Nepal
Energy Centre SEC Islamabad Pakistan
Disaster Management Centre SDMC New Delhi India
Forestry Centre SFC Thimphu Bhutan
Cultural Centre SCC Colombo Srilanka
Development Fund SDF Thimphu Bhutan
REGIONAL CENTRES of SAARC

10. SUMMITs of SAARC:
FIRST SUMMIT: {7-8 Dec, 1985}; Dhaka, Bangladesh.
Their motive is to,
 Establish regional association,
 Forming study groups on the problems of terrorism and drug trafficking, and
 Conference on increasing woman participation.
SECOND SUMMIT: {16-17 Nov, 1986}; Bangalore, India.
Their motive is to,
 Signing MOU in establishing SAARC secretariat by council of ministers,
 Decision to locate secretariat in Kathmandu,
 Appoint Abul Ahsan of Bangladesh as the first Secretary-General of SAARC.
THIRD SUMMIT:{2-4 Nov, 1987}; Kathmandu, Nepal.
Their motive is to,
 Signed the SAARC Regional Convention on Suppression of Terrorism and an agreement to establish a
South Asian Food Reserve in SAARC.

11. FOURTH SUMMIT (1988)Venue: Islamabad
Their motive is to,
• Expression of outrage over attempted coup in Maldives and declaration of support to her
government.
• 1989 declared as the “SAARC Year Against Drug Abuse.”
• 1990 declared as the "SAARC Year of the Girl Child".
• Launch of "SAARC-2000-A Basic Needs Perspective".
FIFTH SUMMIT(1990):Venue: Male
Their motive is to,
• Decision to build the SAARC Tuberculosis Centre and the SAARC Documentation Centre in
Bangladesh and India respectively.
• Declaration of the period 1991-2000 as the “Decade of the girl child”.
SIXTH SUMMIT(1991):Venue: Colombo.
Their motive is to,
• Decision to establish an independent South Asian Commission on Poverty Alleviation.
• Approval for the Inter Governmental Group to be set up.
SEVENTH SUMMIT(1993):Venue: Dhaka
Their motive is to,
• Commitment to end poverty in South Asia by 2002 through a set of strategies known as the
“Agenda of Actions.”

12. EIGHT SUMMIT (1995):Venue: Delhi
Their motive is to,
• 1994 marked as the SAARC Year of Youth.
• 1996 marked as the SAARC Year of Literacy.
NINTH SUMMIT(1997):Venue: Male
Their motive is to,
• 1997 designated the "SAARC Year of Participatory Governance" .
• Agreement to study the social compulsions that lead to child labor.
TENTH SUMMIT (1998):Venue: Colombo
Their motive is to,
• Decision to setup a committee of experts to aide in the formulation of SAFTA.
• Directive for the formulation of SAARC’s social charter issued.
ELEVENTH SUMMIT {5-6 Jan, 2002} Kathmandu, Nepal.
Their motive is to,
 Emphasis is that the members should solve the differences among themselves through mutual
understanding.

13. 13th Summit (2005):
Venue: Dhaka
• 2006-2015 declared as the “Decade of Poverty Alleviation”.
•Agreements signed related to customs assistance, arbitration and tax assistance.
14th Summit (2007):
Venue: Delhi
• SAARC Agenda for Culture launched.
•South Asian university to be established in India.
TWELFTH SUMMIT: {4-6 Jan, 2004} Islamabad, Pakistan.
Their motive is to,
 Agreements were signed to make Asia as a free trade zone.

14. FIFTEENTH SUMMIT: {1-3 Aug, 2008} Colombo, Sri Lanka.
Their motive is to,
 Partnership for growth of South Asia,
 Energy, Environment & Water resources,
 Transport,
 Science and technology,
 Tourism,
 South Asian Free Trade Area,
 Education,
 Admission of Australia and Myanmar as observers.

15. • EIGHTEENTH SUMMIT: {26–27 NOVEMBER 2014} KATHMANDU, NEPAL.
THEIR MOTIVE IS TO
• POVERTY ALLEVIATION
• AGRICULTURE AND FOOD SECURITY
• BLUE ECONOMY
FUTURE PLAN: FIRST SAARC SATELLITE TO BE LAUNCHED BY 2016.
Source:http://economictimes.indiatimes.com/articleshow/48059943
• Modi announced free VISA for Medical purpose (SAARC
countries)
• VISA is extended to business people who frequently do
trading in India

16. GDP
GDP Growth
Rate
Exports
Foreign Direct
Investment
(PPP) -2014 -2014 -2013
Afghanistan 32.007 $63.5 bn 3.20% $0.3 bn N/A 28.1%(Age 15) 15.80%
Bangladesh 159.857 $572.6 bn 6.20% $31.2 bn $0.66 bn 57.7%(Age 15) 31.50%
Bhutan 0.779 $6.3 bn 6.40% $0.7 bn $63 mln 52.8%(age 15) 23.70%
India 1,276.20 ' $7996.6 bn 7.30% $464.0 bn $31.0 bn 74.4%(age 7) 21.90%
Maldives 0.38 $5.2 bn 4.50% $0.28 bn N/A 99%(age 15) 16%
Nepal 28.4 $70.7 bn 5.50% $1.0 bn $10 mln 66%(age 15) 25.20%
Pakistan 190.4 $928.0bn 4.20% $25.1 bn $0.709 bn 55%(age 15) 22.60%
Srilanka 21.7 $233.7 bn 7% $11.8 bn $0.9 bn 98.1%(age 15) 8.90%
COUNTRY
Population
(Million)
Literacy Rate
(Given Age &
above)
Population
below Poverty
Line
This Economic data is sourced from the International Monetary Fund current as of April 2015,
and is given in US dollars.
SAARC IN FIGURES 2015

17. Trade Practices – Top 3 Commodities (World vs India)
2013 2014 %Growth 2013 2014 %Growth %Share
Mineralfuels,oils,distillatioproductsetc 4.2 4.4 4.71 0.45 0.67 50.32 15.22
Vehiclesotherthanrailway,tramway 1.11 1.5 35 0.41 0.57 -2.86 8.63
Machinery,nuclearreactors,boilersetc 1.45 1.39 -4.27 0.12 0.12 -6.89 13.34
India'sExportstoSriLankaSriLanka'sImportsfromWorld
Commodity
2012 2013 %Growth 2012 2013 %Growth%Share
MineralFule,oiletc 0.49 0.5 3.45 0 0 142.16 0.31
Machinery,nuclearreactor,boileretc 0.12 0.14 13.83 0 0 6.43 3.32
Electrical,electronicequipmentetc 0.09 0.12 30.75 0 0 7.27 1.85
Commodity
MaldivesImportfromworld India'sExporttoMaldives
(Values in US$ Billions)

18. Trade Practices – Top 3 Commodities (World
vs India)
2012 2013 % Growth 2012 2013 % Growth % Share
Mineral fuels, oils, distillatio products etc 1.35 1.21 -10.42 1.31 1.14 -13.03 94.13
Iron &Steel 0.5 0.68 35.6 0.45 0.63 40.91 92.62
Animal, vegetable fats &oils, deavage products etc 0.26 0.42 62.03 0 0 3.09 0.46
Commodity
Nepal's Imports fromWorld India's Exports to Nepal
2012 2013 %Growth 2012 2013 %Growth %Share
Commoditiesnotelsewhere specified 2.41 4.83 101.01 0.08 0.00 -100.00 0.00
Mineral fuels,oils,distillationproductsetc. 1.52 1.45 -4.28 0.00 0.00 -29.17 0.00
Ironandsteel 0.35 0.52 51.32 0.00 0.00 -79.42 0.05
Commodity
Afghanistan'sImportsfromWorld India'sexportstoAghanistan
(Values in US$ Billions)

19. Commodity
Bangladesh's
Imports from
World
India's
Export to
Bangladesh
% Share
2013 2013
Cotton 4.97 1.66 33.41
Machinery,nuclear reactors, boilers, etc. 3.36 0.28 8.41
Machinery fuels,oils,distillation products etc. 2.27 0.16 7.13
Trade Practices – Top 3 Commodities (World
vs India)
Commodity
Bhutan's
Imports from
World
India's
Exports to
Bhutan
% Share
2013 2013 %Growth
Mineral fuels, oils, distillation products, etc 0.06 0.06 99.96
Machinery, nuclear reactors, boilers, etc 0.03 0.01 34.38
Electrical, electronic equipment 0.03 0 15.45
(Values in US$ Billions)

20. 2013 2014 %Growth 2013 2014 %Growth %Share
Mineral fuels, oils, distillation products, etc 15.25 14.82 -2.79 0.02 0.04 63.69 0.25
Machinery, nuclearreactors, boilers, etc 3.06 3.93 28.41 0.03 0.06 94.86 1.50
Electrical, electronicdevelopment 2.68 3.35 24.75 0.00 0.02 595.70 0.58
Commodity
PAKISTAN'sIMPORTSFROMWORLD INDIA's EXPORTS TO PAKISTAN
Trade Practices – Top 3 Commodities (World
vs India)
PAKISTAN
Source:
http://indiantradeportal.in/vs.jsp?lang=0&id=0,25,45,
916
(Values in US$ Billions)

21. CRITICAL ANALYSIS
SAARC
SUCCESSES:
 Creating Amiable Environment.
 CREATION OF “SAPTA” : Trading Agreement for promoting trade
amongst the member countries.
 CREATION OF “SAFTA” : A free trade agreement confined to goods
to reduce customs duty of all traded goods to zero by the year
2016.
 ADVANTAGES TO THE DEVELOPING AND UNDERDEVELOPED
COUNTRIES : Provided a forum for bilateral and regional
agreements to the nations for collaboration among themselves

22. SAARC FAILURES
 UNRESOLVED BORDER AND MARITIME ISSUES : This has led to the
problems of Terrorism, Refugee Crisis and Smuggling. These
unresolved issues continue to mar cooperative relations.
 ROLE OF EXTERNAL POWERS : India’s ambitions crisscross with
China. China has strengthened its relationship with Sri Lanka and
Bangladesh. Thus, this has led to the trust deficit in the grouping.
 The intra-regional trade of SAARC amounted to $40.5 billion in
2011, which constitutes just 5% of member countries’ trade.
 In its 30 years of existence, SAARC failed to hold 11 annual
summits for political reasons, both at the bilateral and internal
levels.

23. THANK YOU
Presented by:
Atul Gurav
Aswin Namburi
Shubham Parsekar
Neha Kumari
Shrey Sood
Sourabh Mayabhate
Teja Mulagala
Nitish Moningi
Vivek Kumar