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SPECIAL ISSUE Regional Economic Cooperation: 1999 Progress was recorded on a number of agreed areas of economic cooperation and initiatives were undertaken on a series of 'new areas'. Commerce Secretaries meetThe Committee on Economic Cooperation (CEC), comprising Commerce Secretaries, met for its Tenth Meeting in Dhaka (31st January - 1st February). The CEC was constituted on the recommendation of the Council of Ministers at their Ninth Session in Malé to formulate and oversee implementation of specific measures, policies and programmes within the SAARC framework to strengthen and enhance intra-regional cooperation in the fields of trade and economic relations. At its Dhaka meeting, the CEC laid special emphasis on WTO related issues in view of the Third WTO Ministerial Conference which was to be held at Seattle later in the year. The Secretaries recommended to the SAARC Commerce Ministers, the urgent need for Member States to further intensify the consultation process so as to forge and identify issues of mutual concern on which a SAARC position may be effectively projected. They recommended, in this connection, a series of official level meetings culminating in a Ministerial Meeting and Joint Statement. The CEC also considered a series of other issues related to the SAARC Preferential Trading Arrangement (SAPTA), the South Asian Free Trade Area (SAFTA), customs cooperation and other measures relating to regional integration. (see Newsletter February 1999, Vol.X, No.2) Sheikh Hasina, the Prime Minister of Bangladesh inaugurated the Third Meeting of the SAARC Commerce Ministers in Dhaka (2-3 February) and emphasized the need for the Member States to interact regularly and ensure thereby, that their interests are fully protected at the Seattle WTO Conference. The Meeting focussed on a series of issues and initiatives aimed at promoting intra-SAARC trade and enhancing cooperation and consultation on core economic areas. (see Newsletter February 1999, Vol.X, No.2) Following the mandate given by the Colombo Declaration to draft a comprehensive treaty regime for creating a free trade area, a Committee of Experts (COE) was set up which had their first meeting (Kathmandu, 15-17 July) and agreed on its Terms of Reference. It may be recalled that the Colombo Declaration had expressed the view that the treaty must incorporate, among other things, binding time-frames for freeing trade, measures to facilitate trade, and provisions to ensure an equitable distribution of benefits of trade to all states, especially for smaller and least developed countries, including mechanisms for compensation of revenue loss. As directed by the Committee, the SAARC Secretariat prepared the first working draft of the Treaty for the consideration of the Member States. (see Newsletter July & Aug. 1999, Vol. X, No. 7 & 8).With a view to identifying common standards and certification procedures within the region, including quality control, a Standing Group on Standards, Quality Control and Measurement was set up. Its first meeting (New Delhi, 29-30 June) comprehensively considered a wide range of areas on which cooperation and consultations needed to be entered into with a view to boosting intra-SAARC trade and also adopting joint positions at multilateral negotiating fora. The Meeting decided that India would act as the coordinator for the next three years to monitor progress on evolving a regional plan for standards. It may be recalled that the decision to set up the Standing Group was taken by the SAARC Commerce Ministers at their Second Meeting in Islamabad (see Newsletter July & Aug. 1999, Vol. X, No. 7 & 8).
Pursuant to a decision taken by the Seventh Meeting of the Committee on Economic Cooperation (New Delhi), the first SAARC meeting was held on Avoidance of Double Taxation (Islamabad, 5-7 August 1999) with a view to comprehensively studying the taxation regimes in the Member States and drawing up a draft regional agreement on the avoidance of double taxation as a trade facilitation measure. The seventeenth meeting of the Technical Committee on Transport was held in Islamabad (3-4 March) and reviewed progress on the agreed areas of cooperation. A joint position on WTO matters preparatory to the Third WTO Ministerial Conference was one of the major developments within the SAARC process in 1999. The first related meeting that was held in this connection was on Intellectual Property Rights (20-21 April). The meeting in New Delhi was also the first SAARC Meeting on the wide gamut of issues relating to protection of the region’s traditional knowledge and plant varieties, patents, copyright and intellectual property. The Meeting enabled appreciation of the need to work together to ensure that the regions interests are protected, in particular through the setting up of an Intellectual Property Rights Forum and a networking of the IPR institutions within the region. The inputs from this meeting were considered inter-alia during the discussions on WTO matters. The issues of mutual concern on WTO were initially identified at the level of SAARC Commerce Secretaries through two meetings (New Delhi 10-12 May and Malé 7-8 August). These were followed by a Meeting of the SAARC Commerce Ministers (Malé 9th August). The Ministerial Meeting culminated in a Joint Statement which enunciated the region's concerns on the issues that were likely to come up at Seattle. The Statement was widely circulated among other like-minded countries, well in advance of the Seattle Meeting, so as to ensure that the interests of developing and Least Developed Countries were considered at the Seattle WTO Meeting. The Colombo Summit had directed that the SAARC should establish a Network of Researchers on Global Financial and Economic Issues. In pursuance of this decision, the first meeting was held in Colombo (23-24 February). The second Meeting of the Network held on 10th August agreed on a series of initiatives such as bringing out a South Asian Economic Journal, compiling and publishing a Directory of Research Institutions within South Asia who are engaged in conducting research on global economic and financial issues, as also a short-term and longer-term research agenda on issues of direct policy relevance to the region. The first issue of the South Asian Economic Journal was released in March.
The SAARC Chamber of Commerce and Industry (SCCI) organised the Third SAARC Economic Cooperation Conference (3rd February) in Dhaka. The Conference which brought together the leading industrialists and business houses of the SAARC Member States discussed a wide range of issues aimed at facilitating and invigorating intra-SAARC trade and practical coordination between Government and private sector. The SAARC Secretariat participated in the 13th Indian Engineering Trade Fair (12-17 February) organised by the Confederation of Indian Industries in New Delhi and mounted a stall with information about SAARC. This was part of the Secretariat's efforts at disseminating information among the public on SAARC related issues and activities. The German Foundation for International Development (DSE) organised a Workshop on Competition Policies in Islamabad (22-27 February). UNCTAD, in collaboration with the Government of Sri Lanka, organised a sub-regional Workshop on recent developments in International Investment Agreements (Colombo, 15-16 December, 1999) to consider inter-alia the developmental effects of such agreements. It may be recalled that SAARC is considering a Regional Agreement on Promotion and Protection of Investments within the region as a trade facilitation measure. Given the importance of WTO related issues and with a view to facilitating a fuller understanding of the issues involved and the structure and functioning of the WTO, a Workshop was organised (Malé 16-18 May) by the Government of Maldives with the assistance of the WTO Secretariat in which all SAARC Member States participated. (see Newsletter Sep & Oct 1999., Vol. X, No. 9 & 10). With a view to creating a better understanding of intellectual property rights related issues, the Government of Nepal and WIPO organised a sub-regional forum meeting (Kathmandu, September 7-8). Highlights of SAARC Audio Visual Exchange during 1999 The SAARC Audio Visual Exchange (SAVE) Committee was set up in 1987 to foster greater people-to-people contact in the region. Since then it has been producing SAVE TV/Radio programmes for telecast/ broadcast through national channels of member countries on a regular basis.
The first meeting of Heads of National TV/Radio Organisations of SAARC countries was held in New Delhi on 14 October 1999 which reviewed the current status of radio and television broadcasting in the SAARC region, including the emerging competition from private satellite channels. The meeting highlighted the need for maintaining a balance between the demands of public service broadcasting and the commercial compulsions of having entertainment programmes. The meeting also recommended holding a SAARC Music Festival for broadcast on national radio and TV as a means to promote people-to-people contact in the region.
The above meeting was followed by the eighteenth meeting of the SAVE Committee held in New Delhi on 15-16 October which decided inter alia on a SAARC Film/TV Festival for which each Member State would present a telefilm of 60-minutes duration, subtitled in English. The Committee also previewed and finalised the SAARC Documentary prepared by India as a curtain raiser for the Eleventh SAARC Summit. The Documentary would be telecast on the eve of the Summit. The Committee at its Meeting also decided on holding the Fourth SAARC Radio Quiz in Pakistan, and the Fifth and Sixth SAARC TV Quiz in Bangladesh and Nepal respectively. The Committee decided to hold two Workshops in 2000, one on 'Welfare of Senior Citizens : The Role of Radio' which would be held in Sri Lanka; and the other on 'Cyber Journalism' to be held in Nepal. (see newsletters of Dec. 1999 VolIX No.12 and Vol X No.11&12 for SAVE TV/Radio programmes for 1999 and 2000 respectively ). SAARC Chairperson Visits SAARC Secretariat The President of Sri Lanka and current Chairperson of SAARC, Chandrika Bandaranaike Kumaratunga, who was on a state visit to Nepal, visited the Secretariat on 6 July 1999. She was accompanied by the Foreign Minister, Foreign Secretary and other senior members of Sri Lankan Government.
The Secretary-General of SAARC briefed the visiting President on key developments in the economic, social and institutional areas under the aegis of SAARC. The Chairperson addressed the staff of the Secretariat and offered valuable guidelines to carry the SAARC process forward. The Secretariat also received a number of other important visitors during the year. Among them were a group of Probationers of the Bangladesh Foreign Service; a team from the Bangladesh Defence Service Command and Staff Academy; a team from the Indian National Defence College; and a British Defence Team. The President of the SAARC Chamber of Commerce and Industry along with a delegation called on the Secretary-General during the year, as did a delegation of the Karnataka Chamber of Commerce and Industry.
The Secretariat organised two events under its ‘Discussion Forum’ with a view to benefiting from the experience and knowledge of eminent scholars, the first of which was a presentation by Dr. Panchamukhi, Director General of the Research and Information Systems of Non-alligned and other Member Countries (RIS), who spoke on the theme of Trends and Opportunities in South Asia. SAARC Technical Committees Revamped From 2000, the SAARC Integrated Programme of Action (IPA) will be implemented by a group of newly constituted Technical Committees. Following a review of the functioning of the Technical Committees, the Council of Ministers at their Nuwara Eliya meeting in March 1999 decided that the existing eleven Technical Committees should be replaced by seven new Committees. Under the new arrangement, Agriculture and Rural Development come under one Committee, as is the case with Transport and Communications. Forestry has been added to the TC on Environment and Meteorology, while issues relating to women, children, health and population will be dealt with by the TC on Social Development. While the TC on Science and Technology has been retained under the reconstituted set up, two new TCs, one on Human Resource Development and the other on Energy have been established. Each Member State would assume the Chairmanship of a Technical Committee.It may be recalled that an Independent Expert Group as well as the Group of Eminent Persons set up by the Ninth Summit had reviewed the functioning of the Integrated Programme of Action (IPA) in 1998 and made certain recommendations to streamline the functioning and effectiveness of the existing arrangement. Under the new arrangement, TCs will hold their annual meetings at the Secretariat, unless a member country, in its capacity as the Chairperson, specifically wishes to host the meeting.SAARC and Professional Organisations Various professional organisations have facilitated the official SAARC process. In this regard, the SAARC Chambers of Commerce and Industry (SCCI) has played a positive role in promoting regional economic cooperation. SAARCLAW has played a vital role in bringing together the legal communities of South Asia. A number of other professional organisations have recently received official recognition. These include the South Asian Association for Regional Cooperation of Architects (SAARCH), the Association of Management Development Institutions (AMDISA), the SAARC Federation of University Women (SAARCFUW), the South Asian Federation of Accountants (SAFA), the SAARC Association of Town Planners, and the SAARC Cardiac Society. Several other professional organisations such as the SAARC Radiological Society, the Federation of State Insurance Organization of SAARC Countries, and the Master Printers of South Asia have also sought recognition. The Association of SAARC Speakers and Parliamentarians was launched in 1992. SAARC –Japan Special Fund Promoting Regional Cooperation among SAARC countriesThe SAARC-Japan Special Fund set up in 1993 is entirely funded by the Government of Japan and has been widely used for implementing a number of diverse activities in the Member Countries under the aegis of SAARC. Over the years, the Fund has been utilised for the promotion of cultural and sporting events in the region as well as for holding a number of workshops and seminars, proposed by the member states. During the year 1999, the following activities were organised through this Fund:
A Workshop on Comprehensive Land Use Planning By Online Management Of Land Records For Achieving Food Security was held in India on October 27-29, 1999.
A Seminar on Axle Load Limitations and Control was held in Islamabad on December 6-10, 1999. It was organized by National Highway Authority, Ministry of Communications, Government of Pakistan. COUNCIL OF MINISTERS MEETINGS The Council of Ministers met in its 21st regular session in Nuwara Eliya (Sri Lanka) in March 1999 and reviewed progress on implementation of earlier decisions and agreed on a number of new programmes. (see newsletter Mar. & Apr. 1999, Vol.X, No.3&4 for full details). In September 1999, the Council met at its annual Informal Session in New York on the sidelines of the UNGA. The Council deliberated upon a number of issues relating to SAARC, in particular, recommendations arising from the report of the Group of Eminent Persons (GEP). (see newsletter Sep.&.Oct. 1999, Vol.X, No.9&10 for full detail). At New York, the Council also had Dialogues with the EU Troika and ASEAN, respectively, with a view to forging closer relations with them. In this regard, the Council identified specific areas of cooperation between SAARC and EU and agreed to develop closer functional links between the SAARC Secretariat and the European Commission (see page-3).South Asian Cultural Centre Proposed In an effort to promote the distinctive arts of the South Asia and closer interaction among the cultural institutes in the region, a South Asian Culture Centre is to be set up in Kandy, Sri Lanka. The Government of Sri Lanka has already donated land for the proposed Centre and offered Sri Lankan Rs. 50 million towards the cost of setting up the Centre.It is expected that the first meeting of the Cultural Ministers, to be hosted by Sri Lanka will work out an Action Plan to network the cultural institutes of the region. Among other events of importance in the cultural field that took place during 1999 were: holding of the First SAARC Film Festival in Colombo from September 17 to 24, and the Handicrafts Exhibition held in Kathamndu from 6 to 13 September. The Festival, inaugurated by the Sri Lanka President Chandrika Bandaranaike Kumaratunga, featured a number of films as well documentaries from all member countries. It also included three seminars on different aspects of cinema, including film on cultural expression, film marketing and distribution and the future of the film industry. The Handicrafts Exhibition, aimed at promoting the industry in the region provided an opportunity for artists and craftsmen to learn new techniques from each other. It also helped to strengthen relationships among the handicrafts industry in the region. Promotion of Information Technology in the RegionThe SAARC Documentation Centre (SDC), located at the Indian National Scientific Documentation Centre (INSDOC), New Delhi, organised a number of programmes and activities during 1999 aimed at enhancing knowledge and application of information technology in the region. They included: Short-term Course on Information Technology for Information Management (October 20 – 10 November 1999);
Bangladesh National Scientific and Technical Documentation Centre (BANSDOC) organised a Workshop on Information Infrastructure in the SAARC Region in Dhaka on 25-27 January 2000. Two SAARC Conventions finalized for signatureWomen and children have been a major focus of the SAARC social agenda since inception. During the past year, several initiatives were taken including the finalization of two Conventions: one on the Promotion of Child Welfare and the other against Trafficking in Women and Children for Prostitution. At the Ninth Summit, the leaders of SAARC expressed the need to formulate a Convention on the Promotion of Child Welfare. Consequently, an Expert Group met in Male’ in December 1998 to begin work on drafting the Convention on the Regional Arrangements for the Promotion of Child Welfare. The Convention takes into account all the commitments and obligations entered into by Member States at international and regional conferences, conventions and meetings, in particular, at the World Summit for Children, the UN Convention on the Rights of the Child, and the Rawalpindi Resolution on Children of South Asia. The text of the Convention was finalized at the seventeenth meeting of the Technical Committee on Health, Population Activities and Child Welfare, in August 1999 and would be signed at the Eleventh Summit in Nepal. Recognizing the tragic plight of increasing numbers of women and children becoming victims of the flesh trade both within and between countries, SAARC leaders at the Ninth SAARC Summit pledged to take coordinated efforts at the regional level to effectively address this problem. The draft for the Convention on Combating the Crime of Trafficking in Women and Children for Prostitution was finalized at the Tenth Summit. The Convention seeks to facilitate cross-border collaboration by setting up of a Regional Task Force which will look into not just the criminal but also the human aspects by incorporating the care, treatment, repatriation and the reintegration of the victims. The Colombo Summit decided on the need to draft a Social Charter for the SAARC region. It was envisaged that such a Charter should go beyond national plans of action and provide a much-needed cohesive vision for a regional social agenda focussing on a broad range of goals in crucial areas as poverty eradication, population stabilization, empowerment of women, youth mobilization, human resource development, health and nutrition and protection of children. A Working Paper on the subject, prepared by the Marga Institute (Sri Lanka), was presented to the Twenty-first Session of the Council of Ministers in March 1999. An Inter- Governmental Expert Group will draft the Charter for consideration by the Member States. SAARC Efforts to Combat Terrorism & Drug Trafficking in the Region Member States recognised the need to address the effective implementation of the Conventions on Terrorism and the Prevention of Drug Trafficking, respectively. At a meeting of SAARC Legal Advisors in Kandy, Sri Lanka, in June, the implementation of the Regional Convention on Suppression of Terrorism was reviewed and guidelines formulated for future meetings of Liaison Officers to facilitate regular exchange of information. The meeting felt that there was no immediate need to update the Convention as it has provision to attract offences under the new international and multilateral instruments on the subject. With a view to improving the enforceability of the Convention on Prevention of Narcotic Drugs, as well as initiating a broader framework for cooperation among civil society, national drug control authorities and the governments, the Government of Nepal held, under the SAARC-Japan Special Fund, a Workshop on Networking Arrangements among Law Enforcement Officials and NGOs on Drug Control and related issues, in Kathmandu, in October 1999. The meeting recommended enhancing coordination at national levels as well as within the region between law enforcement agencies and non-governmental organisations engaged in drug control and rehabilitation of drug addicts. SAARC Launches Co-operation in Open Learning and Distance Education in the RegionThe first meeting of the SAARC Forum of Vice-Chancellors of the Open Universities was hosted by Sri Lanka in Colombo from 25-27, January, 1999. The meeting constituted the SAARC Consortium of Open and Distance Learning (SACODiL) with the objectives of promoting cooperation and collaboration among institutions imparting knowledge through open and distance learning within member states, and promoting its use as a viable and cost effective method of imparting quality education at all levels. It could also facilitate the use of open and distance learning for eradication of illiteracy and poverty. The Twenty-sixth Session of the Standing Committee held in Nuwara Eliya, Sri Lanka (March 19 –20, 1999) considered the Report of the First Meeting of Vice-Chancellors of Open Universities and authorized a sub-group of experts drawn from India, Sri Lanka and Maldives to prepare the operational modalities for SACODiL. It was also envisaged that SACODiL would become operational during the year 2000. A Steering Committee of SACODiL was constituted with representatives from all member states. A Sub-committee was also formed comprising of Prof. N.R.Arthenayake of Sri Lanka, Prof. A.W.Khan of India and Dr. Hameed of Maldives to prepare practical proposals. The meeting of the Sub-Committee which took place at the SAARC Secretariat from August 23-25, 1999 proposed a regional mechanism for cooperation and collaboration in the SAARC region, and to promote the use of open and distance learning at all levels of education. The proposal identified the objectives of the SACODiL as joint development of programmes/courses, evolving mechanisms for credit transfer, accumulation and accreditation, sharing information technology to reach out to remote areas and under-privileged people and other matters relating to achieving the goals spelt out by the Vice Chancellors during their Colombo Meeting. Workshop on Road Traffic Congestion ManagementThe Ministry of Surface Transport of India organised a Workshop on Road Traffic Congestion Management for 'Traffic Engineers and Traffic Planners' under the aegis of SAARC in New Delhi on 10-12 February 2000. The Workshop, which emerged from the 17th meeting of the SAARC Technical Committee on Transport, was attended by representatives from SAARC countries and was inaugurated by Ashoke Joshi, Secretary, Ministry of Transport of India.
The topics for discussion were chosen so as to provide coverage on issues relating to planning and the management of road traffic. These included traffic control and management, funding for traffic systems in urban areas, transportation planning studies, role of public transport, traffic environment and road safety, congestion management in urban areas, low-cost traffic management techniques, traffic congestion management in CBC areas, general management and enforcement of traffic.
The delegations from member countries made country presentations on the problems of traffic congestion faced in their countries, including measures undertaken for proper traffic management and for safety standards. After detailed deliberations, a number of recommendations emerged from the Workshop:
the urgency for planning for non-motorised vehicles in the region. Expert Group for reduction of Childhood Neurological Morbidity meetsAn Expert Group Meeting for Upgrading the Training and Research Skills of Pediatricians of SAARC Countries for reduction of Childhood Neurological Morbidity was organized by the All India Institute of Medical Sciences, New Delhi from January 15 to 19, 2000. The activity was sponsored under SAARC-Japan Special Fund. The meeting noted that the South Asia accounts for about 51% of the world’s below 15 years age population. Even though the infant mortality and under five mortality are high, many diseases, deficiencies, infections and disabilities continue to scourge the children. It also noted that the major killers include acute respiratory illnesses, diarrhoea, birth related problems, vaccine preventable illnesses etc. Morbidity patterns indicate that neurological illnesses like infections, seizures, mental and developmental handicaps comprise almost 25% of childhood problems. The Expert Group focused on clinical, diagnostic and management aspects of common causes of childhood neuromorbidity including, cerebral palsy; seizures; mental retardation; CNS infections; preventive neonatal neurology; and prevention and rehabilitation of neuromuscular diseases. In this context, the important components of strategy as conceptualized were:
development of linkages among the SAARC countries and utilization of available resource materials. Workshop on Radio and Internet Technology A Workshop on Radio and Internet Technology was organised by the Sri Lanka Broadcasting Corporation at Institute of Computer Technology (ICT), University of Colombo from January 25 to February 1, 2000. The Workshop, which was sponsored under the SAARC-Japan Special Fund, provided opportunity for participants to enhance knowledge and skills on using Internet content for Radio programming. The participants dealt with diverse aspects of the Radio medium and deliberated on how radio is becoming a stronger and more accessible medium with the help of multimedia and the Internet. A session, which was devoted to writing for radio, demonstrated how to find stories and adapt them for radio broadcast. It demonstrated how news related stories could be downloaded from the most informative websites in the Internet. The deliberations offered an ‘Introduction to Information Technology’ covering sectors from mainframe computer to the present desktop, laptop and notebook versions; and multimedia including text, data, graphics, animation, audio, video and images.Workshop on Information and Communication Technologies In a series of programmes/activities to promote Information and Communication Technologies, a workshop was organised by the Pakistan Science Foundation and COMSATS Institute of Information Technology in Islamabad on 1-4 February 2000. Sponsored under the SAARC-Japan Special Fund, the workshop was attended by participants from the SAARC Member States as well as the SAARC Secretariat.
While inaugurating the workshop, Javed Jabbar, Minister of Information of Pakistan emphasised the need to speed up the promotion of Information and Communication Technology in the SAARC region and requested the experts to identify ways and means for a common man to derive benefits from the new developments in the field.
The deliberations of the workshop covered different phases of the development in electronic media. The programme was spread over four technical sessions as well as practicals covering a broad range of issues including: Internet evolution and its advancements due to the world wide web; development tools and technologies of web sites, including e-commerce, planning and building a web site; multimedia development and related issues; integration with telecommunications, and desktop conferencing with lab demonstrations. DSE Seminar on The German Foundation for International Development (DSE) funded and organised a Seminar on International Treaties on Avoidance of Double Taxation in Colombo on 13-20 January 2000. All SAARC Member States and SAARC Secretariat participated in the Seminar. Michael Krause of German Federal Ministry of Finance; and Ahmad Khan, Member, Monopoly Control Authority of Pakistan, Islamabad were the Resource Persons. Günter Mauersberger from the German Foundation was the Seminar Coordinator. The acting German Ambassador in Colombo, Heinz Kopp inaugurated the Seminar on 13th January 2000. The leaders of delegations from SAARC Countries presented their country reports indicating the status of taxation in their countries and the status of bilateral treaties signed by them or likely to be signed with other SAARC and non-SAARC Countries for avoidance/elimination of double taxation.
The Resource Persons made presentations on various aspects of double taxation, tax treaties, methods for the elimination of double taxation, the OECD Model Convention and the UN Model Convention, conducting negotiations for bilateral treaties on double taxation and various important Articles of Model Conventions including the Permanent Establishment, Taxation of Dividends, Interest and Royalties, fees for technical services, transfer pricing etc. The seventh meeting of the Committee on Economic Cooperation held in New Delhi on 28-29 October 1996 agreed inter-alia to evolve a SAARC Agreement on the Avoidance of Double Taxation. The first SAARC meeting on Avoidance of Double Taxation was accordingly held in Islamabad on 5-7 August 1999. Since SAARC is already considering the possibility of an agreement on avoidance of double taxation, the DSE Seminar was considered useful by all the delegates in Colombo. Facilitating Intra and Inter-Subregional Trade in the SAARC region With a view to invigorating trade competitiveness and improving business performance in the SAARC subregion, ESCAP initiated a Japanese Government funded project to align the trade documents and procedures in India, Nepal and Pakistan. The first National Workshop was jointly organised by ESCAP and SAARC March 1-2, 2000 at the SAARC Secretariat in Kathmandu with the active support from the Ministry of Commerce of HMGN. Participants from concerned Ministries and Departments in Nepal attended the Workshop. The importance of aligning and harmonizing trade documentation and procedures has been recognized in various SAARC meetings, as a means of making trade more competitive and quicker within the region through a reduction in transaction costs. At present, for example to import or export one consignment in India, Nepal or Pakistan, the type of documents required can vary from 15 to 83, and the number of signatures from 56 to 256. If trade is to be accelerated within the SAARC subregion, it is imperative therefore, that business responds not only to the increased rapidity of transactions but also to cost reduction through the elimination of cumbersome formalities which act as impediments to trade.
Chairing the Opening Session, Mohan Dev Pant, Commerce Secretary of Nepal welcomed the convening of the Workshop given the importance of trade facilitation and the need to address it with a sense of urgency, by the government as also the private sector. He said that it was imperative for developing countries to search for easier and cheaper ways of doing trade through the simplification, harmonization and standardization of trade documents. Secretary General of SAARC, Nihal Rodrigo cautioned that globalisation and the emergence of super-efficient global companies could erode the comparative and competitive advantage of the region unless urgent efforts were initiated to streamline procedures and eliminate unnecessary cumbersome documentation and delays. The procedural clogs almost amounted to non-tariff barriers accounting to as much as 10% of costs for some items in certain situations. The sessions in the Workshop covered various inter-related issues such as the implications of SAFTA, the need for documentation and procedure alignment and the perspective of the private sector. The Workshop emphatically endorsed the need to reduce cumbersome requirements and formalities and thereby give a fillip to intra-regional trade. Main
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