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Meeting to finalise SAFTA framework begins
KATHMANDU, DEC 01 - Sixth meeting of Committee of Experts, a joint Secretary-level body of South Asian bloc of SAARC, kicked off today to finalise the draft treaty framework of South Asia Free Trade Area (SAFTA). The meeting will continue for three days.
During today’s meeting, the negotiating member-states discussed over the outstanding issues like Certificates of Origin (CoO) along with countervailing duties and antidumping measures, said a government source. "However, they are still apart on the matter," he said.
The LDC members are still holding stance to limit the value addition up to 20 percent on any product for them for free trade purpose in the region. The developing partners, however, have been denying it.
The source, nonetheless, expressed hope that a positive outcome would be reached by the end of the meeting. "There are only few issues remained to be settled. The meeting is going on positively," he said.
The Committee of Experts requires finalising the SAFTA draft treaty framework prior to 12th ministerial summit of the bloc to be held in Pakistan in January 2004, as per the directives of the 11th summit held in Kathmandu. The final framework is to be tabled at the ministerial summit through the SAARC Secretariat.
As for now, the member-states are still to converge on the final list of sensitive and negative lists to facilitate the free trade in the region. "A final agreement on dispensation to LDCs on countervailing and antidumping measures, which the developing partners have already conferred, is still to be reached," the source added.
Through the five round of meeting held earlier, the member states have already reached in a broad understanding on issues related to implementation of free trade area.
Among others, the member countries have agreed to pledge a 7-year and 10-year transition period for the developing and LDC members respectively to reduce the customs tariff to between zero to five percent and revoke the non-tariff and para-tariff barriers completely.
They have also agreed to develop a revenue compensatory mechanism to ease the LDC members that will lose a significant fund in revenue after the free trade area comes into force.
"Detailed negotiations on the final treaty, however, will still be required. It will be done through a separate body that will be constituted after the summit endorse the framework treaty," the source added.Posted on: 2003-11-30 11:13
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