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SAARC NEWSLETTER, VOL.X, NOS.7&8 JULY-AUGUST 1999
NEWS FROM THE SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION
PRESIDENT OF SRI LANKA,
CURRENT CHAIRPERSON OF SAARC
VISITS THE SECRETARIAT

PRESIDENT OF SRI LANKA and current Chairperson of SAARC, Chandrika Bandaranaike Kumaratunga, who was on a state visit to Nepal visited the SAARC Secretariat. The President was accompanied by the Foreign Minister, Lakshman Kadirgamar; Foreign Secretary (designate), Lionel Fernando; and other senior members of the Sri Lanka delegation.

The Minister of Agriculture of His Majesty's Government of Nepal, Chakra Prasad Bastola and the Minister in attendance was present on the occasion.

Members of the SAARC Secretariat were presented to the President.

Welcoming the Sri Lanka President, the SAARC Secretary-General, Nihal Rodrigo identified some key measures in the economic, social and institutional areas that had been moving ahead in the last year during Sri Lanka's Chairpersonship of SAARC. He said that the Secretariat was playing an increasingly active role given SAARC's heightened engagement, particularly in economic affairs. Members of the staff, who represented all seven Member States were working together and seem to be enjoying the additional work-load involved.

The Sri Lanka President thanked the Secretary-General and Secretariat staff for the very warm welcome accorded to her delegation and herself. She reaffirmed Sri Lanka's renewed commitment to pursue SAARC programmes developing closer, more fruitful economic cooperation, deepening understanding among Member States and addressing objectives like poverty alleviation and social issues holding back the full development, peace and prosperity of South Asia. She expressed confidence in the future of SAARC.

A group of children from the Nepal Children's Organisation performed a colourful traditional dance and sang a song of welcome. The President presented gifts to the children in appreciation of their enthusiasm.

As a souvenir of her visit, the Secretary-General presented a full scale reproduction of a tenth century master piece of Nepali sculpture depicting the birth of the Buddha in Lumbini.


SAFTA COMMITTEE OF EXPERTS MEET

DELEGATES FROM THE SEVEN SAARC COUNTRIES met at the SAARC Secretariat in Kathmandu from 15 to 17 July to commence work on the preparation of a Comprehensive Treaty Regime for the creation of a free trade area in South Asia. M. Sunderalingam of Sri Lanka chaired the meeting.

Inaugurating the First Meeting of the Committee of Experts, Nihal Rodrigo, Secretary-General of SAARC stated that an open national debate has been proceeding in SAARC countries on both the positive aspects of free trade as also its complex ramifications. He mentioned the need to be conscious of the inherent economic asymmetries in South Asia and to contend realistically with structural impediments, discriminatory practices and trade imbalances which have contributed to constrain trade within the region.

Following detailed deliberations, the Committee unanimously adopted its Terms of Reference and a work programme. The Terms of Reference include defining the scope and coverage of SAFTA and the principles for exceptions; provision of a tariff reduction scheme; identification and the elimination within an agreed timeframe of all non-tariff and para-tariff barriers; identification of existing trade-inhibiting infrastructural bottlenecks; preparation of rules of origin; compliance with WTO provisions, including Articles I and III of GATT 1994; and provision of necessary trade facilitation measures in the area of customs cooperation etc.

The Terms of Reference also provide for special measures that are necessary in favour of smaller and least developed Member States to meet the objectives of SAFTA.

The SAARC Secretariat has been requested to prepare the preliminary draft of the Treaty for discussion at the second meeting of the Committee to take place from October 26 to 30, 1999. This Meeting would also consider tariff and non-tariff measures and rules of origin. India would prepare the preliminary draft of the rules of origin for discussion by the Committee.


SAARC STANDING GROUP ON STANDARDS, QUALITY CONTROL AND MEASUREMENT
HOLDS ITS FIRST MEETING

The Standing Group which was constituted following the recommendation of the SAARC Commerce Ministers met at its First Meeting in New Delhi 29-30 June and arrived at far-reaching decisions, which include:

* Recognising the facilitating role that harmonisation and recognition of standards, conformity assessment tests, testing procedures and system would play in accelerating intra-SAARC trade, it was agreed that specific products of interest to the SAARC region would be identified and prioritised so that harmonisation of specific product standards may be arrived at.

* Through a process of regular consultations, positions and strategies would be coordinated so as to effectively project and protect the region’s interests at various international (standards) fora.

* Cooperation and exchange of information; both on accreditation procedures as also on conformity assessment, especially in the area of product certification.

* A status report would be prepared by each Member State on Testing, Measurement and Calibration.

* Training Facilities and Resource Persons in each Member State would be identified and circulated to give special importance to HRD.

A Regional Action was drawn up which India would coordinate for the next three years.

At the Inaugural Session, SAARC Secretary-General in his message stressed the increasing importance of standards and their harmonisation in the promotion of trade. P.P. Prabhu, Commerce Secretary of the Government of India emphasized that all countries would come under increasing pressure to conform to international standards or face market access denial. It was accordingly important for the SAARC member states to first understand each other’s standards and quality control measures and thereafter, to harmonize these with a view to reaching international standards in the region within an agreed time table.


REGIONAL ACTION PLAN ONSTANDARDS, QUALITY CONTROL AND MEASUREMENT AGREED UPON

The Standing Group at its First Meeting in New Delhi agreed to India coordinating and monitoring for the next three years, a Regional Action Plan, the principle elements of which would be as under:

* Identification of products where intra-SAARC trade is being affected due to variation in national standards so that harmonisation may take place.

* Access to certification scheme relating to product, systems and services of one country by other countries, including exchange of information on statutory rules and regulations having bearing on certification.

* Exchanging information in regulatory systems (Agricultural and Food products, Building Material and Household Electrical Appliances would be covered in the first instance)

* Promoting mutual acceptability of the certification process of Member Countries in relation to safety requirements of products.

* Developing a process of accreditation systems in individual Member Countries based on international guidelines.

* Identification of testing and calibration facilitation in the region.

* Exchanging experts from within the region.

* Listing training programmes offered by different SAARC Member Countries.

* Sharing the facility of accreditation bodies so as to avoid duplication of efforts by individual Member Countries.

* Identifying areas where consultations would enable the Region to take a collection position at international standardisation fora.

* Developing regional standards.


DISCUSSION FORUM LAUNCHED AT THE SAARC SECRETARIAT

With a view to benefiting from the experience and knowledge of eminent scholars and opinion-makers resident in and transiting through Nepal and promote the exchange of ideas on SAARC-related subjects, the SAARC Secretariat has started a Discussion Forum in Kathmandu. The idea is to bring together small groups of people together permitting a freer transfer interaction among them.

The first Speaker at the Forum was the eminent scholar economist Dr. V.R. Panchamukhi who is currently based in New Delhi as Director-General of the Research and Information Systems of Non-aligned and other Developing Countries (RIS). The Meeting was attended by around 30 persons from industry, government, multilateral agencies and the media.

Dr. Panchamukhi spoke on the theme of Trends and Opportunities in South Asia. Drawing heavily on the statistics and findings as brought out in the recently launched RIS publication SAARC Survey of Development and Cooperation 1998-1999, Dr. Panchamukhi extolled the virtues of regional economic cooperation specially flagging its urgency. He noted with satisfaction that the Commerce Secretaries of the SAARC region had begun their consultations well in advance of the forthcoming WTO Ministerial Conference and that the region was in the process of forging common positions vis-à-vis the challenges and obligations the Multilateral Trading System was posing.

Dr. Panchamukhi felt that it would be faulty to purely look at the current status or growth of intra-SAARC Trade as a measure of regional cooperation, because the end objective should be to export outside the region and not focus on the region alone as a market. In this regard, Dr. Panchamukhi said that it was imperative for the Member States to focus on vertical integration and investment cooperation and thereby widen the scope of complementaries. He warned that the phasing out of the Multi-fibre Agreement could have very serious implications on the textile industries of the Member Countries necessitating urgent coordination and cooperation among industry of the Member States.

Recalling experiences both historical and global, Dr. Panchamukhi stressed on economic cooperation as the building blocks to strengthening the region.

Earlier in the week, the Prime Minister of Nepal launched the RIS publication SAARC Survey of Development and Cooperation 1998-1999 and called for intensifying the process of regional economic cooperation.


LEGAL EXPERTS ON SAARC CONVENTION ON
SUPPRESSION OF TERRORISM
MEET IN KANDY

THE MEETING OF LEGAL EXPERTS from all SAARC Member States took place in Kandy, Sri Lanka, on 17-18 June pursuant to the directive of the Twenty-fifth Session of the Standing Committee.

The Meeting reviewed progress in the implementation of the SAARC Convention on Suppression of Terrorism, formulated guidelines for the future meetings of liaison officers on exchange of information, and examined the need for updating the SAARC Convention in the light of new developments in the international legal field. The deliberations were conducted in a cordial atmosphere, were clearly focused on the technicalities of the issues involved, and were fruitful.

The Meeting identified three key elements in the Convention as requisites for its successful implementation. These are; (a) creation of offences listed in the Convention, as extraditable offences under the domestic laws of SAARC Member States, (b) treatment of such offences as "non political offences" for purposes of extradition, and (c) vesting of extra-territorial criminal jurisdiction in the event of extradition not being granted.

The delegations briefed the Meeting on the measures that their respective governments have taken, with a view to strengthening the legal regime for combating terrorism, at the national level. Aside from formulating guidelines for the future meetings of the liaison officers, the Meeting also examined the adequacy of the provision of SAARC Convention in the light of new international legal instruments. It was agreed that the SAARC Convention provides for an interim regime to cope with new developments, and that any future review of the Convention should be based on an assessment of the specific needs of the SAARC region.


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