Role of SAARC:
Role of SAARC can be identified in the following ways:
1. ‘South Asia Association for Regional Co-operation’ (SAARC) is a regional initiative among the South Asian States to evolve cooperation from 1985 onwards.
2. It consists of seven members to encourage mutual harmony and understanding.
3. SAARC has initiated SAFTA (South Asian Free Trade Agreement) to form free trade zones for whole South Asia for collective economic security.
4. SAARC has projected economic development of its member states to reduce their dependencies on the non-regional powers.
South Asian Free Trade Agreement (SAFTA) was signed by SAARC members in 2004 with the following features:
1. Formation of free trade zone for whole South Asia.
2. To lower trade tariffs by 20%.
3. To sustain mutual trade and cooperation among SAARC members.
