SAFTA, greater ease of trade crucial to growing South Asia: Asian Development Bank

Only 2% of all foreign trade of countries in the region was with each other

The Asian Development Bank (ADB) has prescribed overhauling of trade policy, focus on sub continental trade on a priority basis and full implementation of the South Asian Free Trade Area (SAFTA) programme to boost the trade in South Asia.

Speaking at the South Asia Economic Conclave, organised by industry organisation Confederation of Indian Industries, ADB Deputy Director General for South Asia Diwesh Sharan, said strict steps needed to be taken to boost trade among the growing economies in South Asia who were losing out on enormous trade opportunities. He said only 2 per cent of all foreign trade of countries in the region was with each other and that's why bilateral trade agreements are the need of the hour.

The ADB has suggested facilitating the World Trade Organisation trade facilitation agreement as well as implementaing SAFTA, which were long due. He said major economies like India, Pakistan and Bangladesh needed to do the needful on the issue by 2020 while least developed countries like Maldives and Afghanistan should restrict themselves to doing the same by 2015 at the latest.

In the field of banking, ADB recommends an open banking sector in the entire region by 2020 and advises the capital markets to be aligned with each other by 2025.

Open movement of skilled labour and removal of visa complications and non tariff trade barriers were also recommended.