FACTBOX-Politics hobbles trade at Colombo SAARC meet

FACTBOX-Politics hobbles trade at Colombo SAARC meetWed Jul 30, 2008 12:17pm IST Email | Print |Share| Single Page[-] Text [+]July 30 (Reuters) - Trade and terrorism are on the agenda for the 15th South Asian Association for Regional Cooperation (SAARC) summit in Colombo on Aug. 2 and 3.Here is an overview of the group and its agenda:For a full story, please click on [ID:nSP322153]HISTORY, AIMS:- SAARC was established in 1985 by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Afghanistan became the eighth member in 2007.- Formed to help boost economic growth and trade in one of the world's poorest regions -- home to about 1.5 billion people, tens of millions of whom live in abject poverty -- it has been flayed by critics who say it has remained a talking shop where lofty speeches are rarely translated into action.TRADE RHETORIC AND REALITY:- Trade between members did not accelerate in the five years after structured economic cooperation began with the SAARC Preferential Trading Arrangement (SAPTA) in December 1995.- Intra-SAARC commerce remains at just over five percent, compared to other regional forums such as Asean's internal trade at 26 percent and EU's 55 percent.SLOW PROGRESS, INDIA-PAKISTAN PROBLEMS:- Signed in January 2004, the South Asian Free Trade Area (SAFTA) agreement, supposed to supersede SAPTA, finally came into force in July 2006.- Aimed at achieving zero tariffs on almost all products by 2012, SAFTA has witnessed squabbles over tariff concessions with Pakistan accusing India of violating the agreement with various Non-Tariff Barriers.- SAARC's perceived failure to take off despite many summits has been traced to mistrust and animosity between its two biggest members, India and Pakistan, whose rivalry dates back to their independence in 1947. Their uneasy ties, particularly over disputed Kashmir, still undermine greater regional cooperation.ISSUES ON THE TABLE IN COLOMBO:- Officials say no major agreements are expected -- accords could include one to launch a SAARC Development Fund (SDF), a pact on regional legal cooperation to fight crimes and a fund to manage food and energy crisis.- India would push for counter-terrorism drive after facing a wave of bombings last week, and another attack on its embassy in Kabul that India blames on Pakistan's spy agency. (Compiled by Krittivas Mukherjee; Editing by David Fox)

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