Leaders to Take Bold Steps for Economic
Integration
Sagar Lohani
The 13th South Asian summit held at
Bangladesh-China Friendship Conference Centre in
the capital city of Bangladesh from November 12
to 13, 2005 with the leaders of the South Asian
Association for Regional Cooperation (SAARC),
countries agreeing to take bold steps to promote
regional economic cooperation.
They promised to build a South Asia where
political harmony and economic integration would
be the cornerstones of development, prosperity
and peace. The leaders also vowed to face the
common challenges in order to realize the
aspirations of the 1.5 billion people of the
region.
At the opening of the two-day summit, the
assembled heads of state and government pledged
to slash trade barriers with putting SAFTA into
operation from January next to boost the
economic growth of a this region.
The leaders said the South Asian Association for
Regional Cooperation has started to exude a new
confidence thanks to a positive political
atmosphere prevailing in the region. The
momentum thus gained should be sustained.
They emphasized joining in the Asian mainstream
of economic growth and prosperity. The
free-trade agreement is a shining milestone in
the history of SAARC and, if pursued in earnest,
it will inject new energies into our economies,
the leaders observed.
Once the restrictions are removed, the volume of
trade among the seven countries can rise to $14
billion from the present $5 billion a year, the
Federation of Indian Chambers of Commerce and
Industry estimates.
The South Asian leaders named pulling millions
out of abject poverty, combating terrorism and
dealing with natural disasters more effectively
as the issues of highest priority. They also
stressed on a new vision for SAARC in its third
decade.
The summit began amidst the tightest-ever
security with observing one-minute silence in
memory of the victims of the October 8
earthquake in Kashmir and last December's
tsunami of three SAARC nations.
Pakistan Prime Minister Shaukat Aziz handed over
the SAARC baton to the summit hostess, Khaleda
Zia, to steer the seven-nation forum for the
next one year. Khaleda was elected SAARC
chairperson first in 1993 at the 7th SAARC
summit in Dhaka.
Terming accelerating the economic growth as a
major objective of SAARC, the premiers of
Bangladesh Prime Minister Khaleda Zia, Indian
Prime Minister Dr Manmohan Singh and Pakistan
Prime Minister Shaukat Aziz expressed their firm
determination to implement the South Asia Free
Trade Area as per its schedule in January. The
other leaders taking part in the summit -- Sri
Lankan President Chandrika Bandaranaike
Kumaratunga, Maldives President Maumoon Abdul
Gayoom, Nepalese King Gyanendra Bir Bikram Shah
Dev and Bhutanese Prime Minister Lyonpo Sangay
Ngedup -- echoed them on timely implementation
of Safta.
Dr Singh said, "The honest answer is that
regional economic cooperation in South Asia has
fallen far short of our expectations." While Khaleda Zia observed, "Mindsets and perceptions
emanating from the past" were affecting regional
cooperation.
As natural disasters presented a new challenge
to the region, the SAARC leaders emphasized
building a regional early-warning centre and
cooperation in disaster preparedness and
management. Leaders also underscored the threat
to the region's ecological balance arising out
of years of neglect and pressure on its natural
resources.
The SAARC leaders also spoke about setting up
new markers for regional cooperation,
implementation of the SAARC social charter and
energy cooperation. They stressed the need for
speedy implementation of decisions and
translating them into tangible terms through
prioritizing, quantifying and evaluating
constantly the forum activities.
The summit was ended on November 13 adopting a
53-point Dhaka Declaration, pledging to draw a
roadmap for the next decade, slash trade
barriers from next year to boost economic growth
and combat poverty and terrorism to reach the
common regional goals.
Three major agreements signed
SAARC members yesterday signed three major
agreements, all for facilitating intra-regional
trade as the seven South Asian countries are
going to launch a free trade area next year.
The accords are Agreement on Mutual
Administrative Assistance in Customs Matters,
Agreement on Establishment of SAARC Arbitration
Council, and Limited Multilateral Agreement on
Avoidance of Double Taxation and Mutual
Administrative Assistance in Tax Matters.
The foreign ministers of the member countries
inked the agreements in presence of their heads
of state or government.
Afghanistan to be new member
China, Japan observers
The leaders of SAARC have decided to welcome
Afghanistan as the South Asian forum's new
member and accord observer status to China and
Japan. Afghanistan will be the eighth member of
the South Asian Association for Regional
Cooperation (SAARC), launched in Dhaka in 1985
with founding members Bangladesh, Bhutan, India,
the Maldives, Nepal, Pakistan and Sri Lanka.
Bangladesh Prime Minister and new SAARC
Chairperson Khaleda Zia formally announced the
decisions at a crowded press conference at
International Conference Centre soon after the
concluding session of the 13th SAARC Summit in
Dhaka on November 13, 2005.
"I am happy to announce that the SAARC leaders
have admitted Afghanistan as a full member of
SAARC, subject to completion of formalities,"
she said. "We have also decided to accord
observer status to the People's Republic of
China and Japan," she added.
"We are delighted to welcome Afghanistan to our
group," Indian Prime Minister Manmohan Singh
said at the concluding session. "This is an
appropriate recognition of the long-standing
ties of culture and history that Afghanistan
shares with us."
The SAARC Standing Committee will prepare the
modalities regarding membership of Afghanistan
and observer status of China and Japan in April
next year. The Bangladesh premier said the
modalities will be finalized by the SAARC
Council of Ministers at its 27th meeting in July
2006.
India will Host Next Summit in 2007
The 14th Summit of the seven-nation South Asian
Association for Regional Cooperation will be
held in India in 2007.
The SAARC leaders at the concluding day of the
13th summit accepted the Indian proposal for
hosting the next summit, which was supposed to
host by Bhutan. Bhutan regretted its inability
to host the next summit due to unavoidable
circumstances.
The Indian Prime Minister, Manmohan Singh, in
his speech in the concluding session invited all
concerned to the 14th summit. 'We look forward
to welcome you all to India', Singh told the
conference and thanked the SAARC leaders for
welcoming the Indian offer. ¨
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The 13th South Asian summit held at
Bangladesh-China Friendship Conference Centre in
the capital city of Bangladesh from November 12
to 13, 2005 with the leaders of the South Asian
Association for Regional Cooperation (SAARC),
countries agreeing to take bold steps to promote
regional economic cooperation. 
named pulling millions
out of abject poverty, combating terrorism and
dealing with natural disasters more effectively
as the issues of highest priority. They also
stressed on a new vision for SAARC in its third
decade. 
t summit, which was supposed to
host by Bhutan. Bhutan regretted its inability
to host the next summit due to unavoidable
circumstances.