Photo: PTI

FOR A BIGGER SHARE: Nepal Prime Minister G.P. Koirala addresses the inaugural session of the 14th SAARC Summit in New Delhi on Tuesday.

NEW DELHI: Nepal, Bhutan and Maldives on Tuesday made out a strong case for making the South Asian Free Trade Agreement (SAFTA) fully operational as economic cooperation and free trade lay at the heart of successful regionalism.

In his address at the inaugural session of the 14th summit of the South Asian Association for Regional Cooperation (SAARC) here, Nepal Prime Minister Girija Prasad Koirala said all eight member-countries "should strive to take concrete and interlocking steps in an accelerated pace to operationalise the Free Trade Agreement and enhance the size of the pie for all."

Quoting studies which have shown South Asian borders to be more cumbersome to pass through than many regions, he said all the member-countries should reduce physical barriers to transport and communications, which were fundamental to economic interaction. "Trade facilitation measures should, therefore, receive as much priority as the implementation of SAFTA in our deliberations."

Speaking in a similar vein, Maldives President Maumoon Abdul Gayoom pointed out that SAFTA was a springboard for deeper integration of the SAARC countries. "It can launch us on the journey towards a Customs Union and an Economic Union. But for SAFTA to become that platform, we must make it fully operational."

"Inequality unabated"

Economic openness had not strengthened regional cooperation till date, nor did greater integration with the global economy provide equitable benefits for the region, he lamented. "Vast numbers of South Asians have moved out of destitution, but inequality has not decreased."

Articulating Maldives' support for the vision of a `South Asian community' with unhindered flow of goods, services, people, capital, culture and ideas in the region, Mr. Gayoom asserted that SAARC must become less of a monopoly of governments and belong more to the people. Stating that SAARC belonged to over 1.4 billion people, he pledged support for the idea of a South Asian Parliament, which could become a forum to develop norms in the quest of an Economic Union.

Bhutan Prime Minister Lyonpo Khandu Wangchuk, dwelling on the centrality of economic cooperation to successful regionalism, said: "The signing and ratification of SAFTA symbolised our collective commitment to enhance intra-SAARC trade."

Referring to the high growth rates in the larger economies of the region, he said, "This augurs well for us by way of creation of vast economic opportunities and, therefore, we must implement SAFTA and its Trade Liberalisation Programme in earnest."

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