Roundtable on SAFTA: Prospects and Opportunities for Trade in Services

“South Asia needs to take concrete, correct and quick decisions to reap the benefits of economic integration.”

The SAARC Chamber of Commerce and Industry (SAARC CCI), the apex trade body of the South Asian region, organized a Roundtable on “SAFTA: Prospects and Opportunities for Trade in Services” in the capital city of Bhutan, Thimphu. The objective of the programme was to identify the constraints in trade liberalization in South Asia and to create awareness about the need and advantages within trade in services. The programme was supported by the Friedrich Naumann Stiftung für die Freiheit.

SAFTA is currently in its first phase of implementation. The progress remains rather slow, with
Bap Kinga, VP-Bhutan, SCCI addressing the gathering a lot of reservations about its successful implementation. An important aspect of organizing the event in Bhutan was to involve the smaller countries of the region to play an active role in the process of regional integration. Not only to make them understand the benefits of cooperation but more importantly, the costs of non-cooperation, which would be greater for the smaller countries as compared to the larger economies of South Asia.

The Roundtable in Bhutan reiterated the need for private sector representation in the meetings of the CoE (Committee of Experts) which are held at the governmental level from time to time.
Amir Khusro Chowdhury, former Minister of Commerce, Bangladesh (extreme Right) among the audience This would ensure that the needs and demands of the private sector are addressed in achieving regional economic integration.

As the South Asian region continues to grow economically – the role of the services sector cannot be ignored. South Asia sits on a goldmine of human resource with a large pool of qualified, talented and educated society. Still, it is yet to reap the benefits of trade in services. In the manufacturing sector, South Asia already seems to have missed the bus, having fallen behind many of its Asian counterparts. If it fails to take the necessary policy reforms in the services sector, it might not be able to capitalize on its strengths, said Subodh Kumar, representing FNF.

The Hon’ble Minister for Economic Affairs, Royal Government of Bhutan, H.E. Lyonpo Khandu Wangchuk, identified areas of common interest to proceed on regional integration. Sports
Participants interacting in the plenary session could be the starting point with an interest in Cricket from most of the member countries, he said.

The Roundtable had two technical sessions - a) Quantification of Benefits from Cooperation in Services under SAFTA and b) Services and Growth: Scope of integration of Smaller Economies. Prominent speakers discussed the advantages of Free Trade Area in the South Asian context in both the sessions. Prof M.P. Lama, India, Prof. Rohan Samarajiva, Sri Lanka and Mr. Amir Khosru Mahmud, Bangladesh constituted the panel from different SAARC member countries.

The event was well-attended and reported in the national dailies of Bhutan.

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