Free trade: an engine for growth or for exploitation?
How can Pakistan make the most of its own deals with countries like China and Malaysia?
ISLAMABAD:
Free trade is a theoretical framework that allows trading partners to import and export goods and services without any sort of barriers and restrictions. Free trade is, in fact, a trade policy under which governments impose no restrictions, whatsoever, on imports and exports to each other on the basis of comparative advantage. Free trade agreements (FTAs) are treaties under which the countries regulate their trade by waiving off specific set of duties, taxes and tariffs apparently to get maximum benefit out of their comparative advantage positions. What are advantages and disadvantages of such free trade arrangements for the countries like Pakistan and what are the best practices that could be quoted as examples to be followed in the world?
By Dr. Srimal Fernando
Economic integration is more important today than it has ever been for South Asia’s development. When comparing the impact of South Asian Association for Regional Cooperation (SAARC)s South Asian Free Trade Area (SAFTA) and the Association of Southeast Asian Nations (ASEAN ) Free Trade Area (AFTA) in promoting trade amongst its member states, AFTA has been more effective in integrating the economies of its member states. SAFTA , on the other hand, has yet to make significant contributions to the integration of the economies of SAARC member states. The Success of ASEAN’s economic integration can be attributed to the willingness of Southeast Asian countries to embrace the tenets of regional integration. In contrast, SAARC’s model has failed to create a secure regional environment that is conducive for economic growth since its formation.
Sabyasachi Dutta, executive director of Asian Confluence, explains that “Historically the Bay has been a connector for the diverse peoples of South and Southeast Asia via trade and cultural interactions.” Additional titles in the Asia Pacific Bulletin seriesThe Bay of Bengal, the world’s largest Bay, is strategically located in the Indian Ocean. On its western rim, lies the
Expats fly chartered flight via Armenia and Uzbekistan to reach Gulf destinations
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With several Gulf Cooperation Council (GCC) countries barring the entry of travellers from India, non-resident Indians are choosing the transit route to several other nations including two former Soviet republics - Armenia and Uzbekistan- to reach their destinations.
The entry of travellers from Indian have been prohibited in United Arab Emirates (UAE), Saudia Arabia, Oman and Kuwait. However, exemptions are given to passengers if they underwent quarantine for 14 days in a third country.
Earlier expatriates, desperate to get back to their jobs and business- related activity, used the transit routes like Nepal, Maldives and Sri Lanka to reach the GCC countries which are tightening rules now following the COVID-19 surge in India.
Daily Times
May 10, 2021
The South Asian Association for Regional Cooperation (SAARC) was established on December 8, 1985 with its Secretariat in Kathmandu, Nepal. All the South Asian states: Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, are its founding members. However, Afghanistan joined the group in April 2007.
SAARC is comprised of countries with diverse religion, ethnicities, and cultures. The primary purpose of SAARC was to promote peace and stability in the region. However, according to Ambassador Shamshad Ahmad, “The serious economic and social poverty and challenges that it faces have been compounded by long-standing intra-tensions and unresolved inter-state disputes.” The South Asian region is the most backward, poorest, and conflict-ridden region in the world, primarily due to India-Pakistan enduring rivalry over Jammu and Kashmir (J&K) dispute. Pakistan is not the only state of the region affected due to India’s hegemonic designs, but