Efektifitas SAFTA (South Asia Free Trade Agreement) Dalam Meningkatkan Liberalisasi Perdagangan Intra- Kawasan SAARC (South Asian Arrangement Of Regional Cooperation)

Abstract

This research of this thesis is aimed to recognize the obstacles which arecause the failure of SAFTA in SAARC economy integrating process. Thepurpose of this thesis more specificly can be seen such as: 1. Describingthe failure of SAFTA in improving the intra-regional trading liberalitationof SAARC in 2007-2010. 2. Describing the obstacles of improving the intra-regional trading liberalitation of SAARC. In spite of South Asia freetrade cooperation by South Asian Preferential Trade Agremeent (SAPTA)in 1995 and South Asian Free Trade Agreement (SAFTA) in 2006, there isstill low percentage of intra-regional trade, especially export volume, comparedwith their total world export. However, its ratio percentage was 4-6%, whereas Eropa Union was 57-65%, ASEAN was 22-25%, and NAFTA was48-55% within 2000-2010. The main cause is the incomplementary of theirproducts export both in economy and political perspective. It means thatthey yield the similiar products, in particularly textile products, so that theyhave to relocate and sell their export products to outside regional countries,such as United States and Eropa Union, instead of making trade withSAARC members.

Keywords: SAARC, SAPTA, SAFTA, incomplementary of their products,industrial policy, and trade policy