Tuesday, November 24, 2015

International Organisations BIMSTEC, SAARC, SAPTA, SAFTA For IBPS

IBPS Clerk is on its way, and you are also preparing hard. One or two simple questions are always asked from the international organisations topic. We have already discussed IMF and World Bank. (Click on the blue link to read them).  Let's see four more international organisations.

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) 

BIMSTEC is an international organisation consisting a group of countries in South Asia and South East Asia. Initially, it was BIST-EC (Bangladesh, India, Sri Lanka and Thailand Economic Cooperation). Later, Myanmar, Nepal and Bhutan became its full member, then its name changed to BIMSTEC.  Bimstec Headquarters is situated in Dhaka.

South Asian Association for Regional Cooperation (SAARC)

SAARC is an economic and geopolitical organisation of eight countries that are primarily located in South Asia or the Indian subcontinent.  India accounts for nearly 80% of SAARC's economy. The first summit was held in Dhaka on 8 December 1985, on the day SAARC was established. The member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
The States with observer status include  Australia, China, the European Union, Iran, Japan, Mauritius, Myanmar, South Korea and the United States.

SAARC Preferential Trading Arrangement (SAPTA) 

The Agreement on SAPTA was signed on 11th April 1993 and entered into force on 7th December 1995. It's an Intergovernmental Group(IGG) of Countries. The Agreement reflected the desire of the Member States to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions.

South Asian Free Trade Area (SAFTA) 

It is an agreement reached on 6th January 2004 at the 12th SAARC Summit in Islamabad, Pakistan. It created a free trade area of 1. 8 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016. The SAFTA agreement came into force on 1 January 2006. SAFTA requires the developing countries in South Asia (i.e India, Pakistan and Sri Lanka) to bring their duties down to 20 percent in the first phase of the two-year period ending in 2007. In the final five-year phase ending 2012, the 20 percent duty will be reduced to zero in a series of annual cuts. The least developed nations in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives) have an additional three years to reduce tariffs to zero. India and Pakistan ratified the treaty in 2009, whereas Afghanistan as the 8th member state of the SAARC ratified the SAFTA protocol on the 4th of May 2011. (Ratified: to make officially valid)


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