NATIONAL INSTUITE OF FASHION TECHNOLOGY

NATIONAL INSTUITE OF FASHION TECHNOLOGY

REGIONAL TRADE BLOCKSRegional trade blocks are associations of nations at governmental level to promote trade within the block and defend its members against global competition. Defense against global competition is obtained through established tariffs on goods produced by member states, import quotas, government subsidies, onerous bureaucratic import processes, and technical and other non-tariff barriers.Since trade is not an isolated activity, member states within regional blocks also cooperate in economic, political, security, climatic, and other issues affecting the region.SOUTH ASEAN ASSOCIATION FOR REGIONAL COOPERATIONSEstablishment 1985Secretariat Kathmandu, NepalSecretary-general- Arjun Bahadur ThapaMembers- India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives and Afghanistan.Observers- Australia, China, the European Union, Iran, Japan, Mauritius, Myanmar, South Korea and the United States.

Though SAARC covers 3% area of world but it has 21% population of the world. Myanmar seeks future membership while Turkey and Russia applied for observer status. South Asian countries have shared common culture, ethnicity, history, geography. Vision for SAARC in 1998, which envisaged the establishment of a South Asian Free Trade Area by 2010, a Customs Union by 2015 and an Economic Union by 2020. Mr. Vajpayee even advocated that the culmination of this process should be the establishment of a SAARC Monetar

The South Asian Association for Regional Cooperation (SAARC) is a political and economical organization in South Asia. It is the largest regional organization and was established on December 8, 1985 by Bangladesh, Bhutan, Maldives, Nepal, Pakistan, India, and Sri Lanka. Eighth country Afghanistan was added on the request of India on November 13th, 2005 and became a member of SAARC on April 3, 2007. The purpose of the establishment of SAARC is to provide platform to the people of Southern Asia to make joint efforts to promote harmony, conviction, and understanding among states.WTO aims to facilitate the free trade among member countries. But the issues of restriction on trade, customers safety, human privileges and environmental harms are prominent in developed and less developed countries. After the failure of its implications, an alternative regional trade agreement (RTA) was established in WTO and then developed countries and developing countries moved to regional trade agreements or bilateral trade agreements. SAARC was entered in regional trade agreement in 2004. Before entering in the (RTA), South Asian Preferential Trading Agreement (SAPTA) was formed in 1993 and it would be changed into South Asian Free Trade Agreement (SAFTA) in January 6, 2004 on the 12th Summit at Islamabad. (Ali & Talukder, 2009 and Chaturvedi et al., 2007). This study highlights the main trade barriers among SAARC member states. This work also attempts to identify the maximum facilitations provided by the management of SAARC and by the legal regulations of the governments of the contracting states. Literature gives a brief discussion on the SAARC and then trade among SAARC. Centre for Promoting Ideas, USA. Before moving towards the concerned topic of barriers and facilitations of trade among SAARC, research study mentioned the basic trade agreements of SAARC member states.Eight NationsAfghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. SAARC EXTERNAL RELATIONS Six Observers China, Japan, European Union, Republic of Korea, United States, Iran. GLOBALISMGlobalism is defined as a borderless world programme that implies a tendency towards a global social system. Its historical origins reached a new stage in the post-Second World War era since the sense of geographical distance has dramatically changed; some even speak of the end of geography. The world is now considered as one global village. Globalization is a new phenomenon. There is an intricate relationship between regionalization and globalization. Compared to regionalism with an impressive theoretical tradition behind it, globalism is a more recent concept in social sciences. Whether its consequences are seen as catastrophic or as the ultimate unification of the world, the concept of globalisation is often used in a rather loose and ideological sense. However, there are also many definitions of regionalism. For the critics, the regionalist trend constitutes a threat to the multilateral system, on the other hand, for the enthusiasts the regionalism could form the basis for an improved multilateral system. The effectiveness of regional governance arrangements has been recognized since the end of the Second World War. Now regionalism has emerged as one of the dominant themes of World politics in the post-Cold WarREGIONALISM Regions in international politics are described as a limited number of states linked by a geographical relationship and by a degree of mutual independence and could be differentiated according to the level and scope of exchange, formal organizations, and political interdependence.4 It involves formal and informal agreements marked by explicit and implicit principles, norms, rules and decision-making procedures around which actors expectations converge in a given area of international relations.5 Regionalization does not come about unless the states in a particular region want it. It may come about through political regime, economic policy or security but often triggers from political events that set the process in motion. The foreign policy and political events identify this change in a state as an actor in regional integration process. Region as a geographical unit is delimited by more or less through natural physical barriers and is marked by ecological characteristics that as social system imply trans-local relations between human groups. Region is organized for cooperation in the cultural, economic, and political and security fields. Region in civil society takes shape when the organizational frameworkThe idea of regional cooperation in South Asia was first raised in November 1980. After consultations, the foreign secretaries of the seven founding countriesBangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lankamet for the first time in Colombo in April 1981. This was followed a few months later by a meeting of the Committee of the Whole, which identified five broad areas for regional cooperation. The foreign ministers, at their first meeting in New Delhi in August 1983, adopted the Declaration on South Asian Association for Regional Cooperation (SAARC) and formally launched the Integrated Program of Action (IPA) in the five agreed areas of cooperation: agriculture; rural development; telecommunications; meteorology; and health and population activities. Later, transport; postal services; scientific and technological cooperation; and sports, arts, and culture were added to the IPA. Afghanistan became the newest member of SAARC at the 13th annual summit in 2005. China and Japan were granted observer status at the same.The SAARC seeks to promote the welfare of the peoples of South Asia, strengthen collective self-reliance, promote active collaboration and mutual assistance in various fields, and cooperate with international and regional organizations.

POLITICAL COOPERATIONLasting peace and prosperity of the Indian subcontinent has been elusive because of the various ongoing conflicts and in the region. Political dialogue is often conducted on the margins of SAARC meetings which have refrained from interfering in the internal matters of its member states.During the 12th and 13th SAARC summits, extreme emphasis was laid upon greater co-operation between the SAARC members to fight terrorism South Asian Free Trade Area

Countries under the South Asian Free Trade AreaSAFTA was envisaged primarily as the first step towards the transition to aSouth Asian Free Trade Area (SAFTA)leading subsequently towards a Customs Union, Common Market and Economic Union. In 1995, the Sixteenth session of the Council of Ministers (New Delhi, 1819 December 1995) agreed on the need to strive for the realization of SAFTA and to this end an Inter-Governmental Expert Group (IGEG) was set up in 1996 to identify the necessary steps for progressing to a free trade area. The Tenth SAARC Summit (Colombo, 2931 July 1998) decided to set up a Committee of Experts (COE) to draft a comprehensive treaty framework for creating a free trade area within the region, taking into consideration the asymmetries in development within the region and bearing in mind the need to fix realistic and achievable targets. The SAFTA Agreement was signed on 6 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006, and the Trade Liberalization Programme commenced from 1 July 2006. Under this agreement, SAARC members will bring their duties down to 20 per cent by 2009. Following the Agreement coming into force the SAFTA Ministerial Council (SMC) has been established comprising the Commerce Ministers of the Member States.In 2012 the SAARC exports increased substantially to US$354.6 billion from US$206.7 billion in 2009. Imports too increased from US$330 billion to US$602 billion over the same period. But the intra-SAARC trade amounts to just a little over 1% of SAARC's GDP. In contrast, inASEAN(which is actually smaller than SAARC in terms of size of economy) the intra-bloc trade stands at 10% of its GDP.

SAARC SUMMIT

The Charter (Article III) provides that the Heads of State or Government "shall meet once a year or more often as and when considered necessary by the Member States". However, the Summit has generally been convened at an interval of one and half year or so. The next i.e. Sixteenth Summit of the Heads of State or Government would be held at Thimphu on 28-29 April 2010.Summit Declarations provide directives and mandate for regional co-operation. Following are the past Summit Declarations: First SAARC Summit , Dhaka, 1985 Second SAARC Summit, Bangalore, 1986 Third SAARC Summit , Kathmandu, 1987 Forth SAARC Summit, Islamabad, 1986 Fifth SAARC Summit, Male, 1990 Sixth SAARC Summit, Colombo ,1991 Seventh SAARC Summit Dhaka, 1993 Eighth SAARC Summit New Delhi, 1995 Ninth SAARC Summit Male, 1997 Tenth SAARC Summit, Colombo, 1998 Eleventh SAARC Summit, Kathmandu, 2002 Twelfth SAARC Summit, Islamabad, 2004 Thirteenth SAARC Summit, Dhaka, 2005 Fourteenth SAARC Summit , New Delhi, 2007 Fifteenth SAARC Summit, Colombo, 2008 Sixteenth SAARC Summit, Thimpu , 2010 Seventeenth SAARC Summit, Addu City, 2011 Eighteenth SAARC Summit, Kanthmandu, 2014

SAARC ACHIEVEMENTS A Free Trade Agreement confined to goods, but excluding all services like information technology. Agreement was signed to reduce customs duties of all traded goods to zero by the year 2016. South Asia Preferential Trading Agreement for promoting trade amongst the member countries came into effect in 1995. SAARC visa exemption decided that certain categories of dignitaries should be entitled to a Special Travel document, which would exempt them from visas within the region. Greater cultural co-operation It has provided forum for bilateral and regional agreements to the small poor nations for collaboration among themselves for development.

SAARC AND CHINA

China currently observer state of SAARC wants to join as a member of SAARC for number of reasons China is the development stakes in almost all states in the SAARC. It has been involved in several construction and infrastructure projects in these countries under its foreign policy named as pearl of string. China shares a special relationship with Pakistan which will find comfortable to deal with India if china sits with Pakistan. Regional stability can bring prosperity. It will facilitate the trade which will boost Chinese manufacturing industry. It would have significant advantages for exports. If SAFTA came into being china will get benefits from it.

DISADVANTAGES OF MEMBERSHIP OF CHINA

China might use its economic power to dominate the small nations. Small nations might become raw material suppliers only importing manufactured goods from China.

China will join hands with Pakistan which is already having obstructionist policies so overall efforts for regional co-operation will become fruitless.

China does not categorized in south Asia geogrphically.It does not share historical or cultural connection, other countries as all other members shared

China might veto important proposals relating to South Asian development.

ADVANTAGES OF MEMBERSHIP OF CHINA

The SAARC is dominated by India. China's inclusion will balance the group.

Though all countries have relationship with China Bhutan can develop relationship with China

Transit route through Nepal will facilitate trade in region. The Lhasa-Naqu-Golmud railway would help in this venture.

BARRIERS TOWARDS TRADE AMONG SAARC BARRIERS It means that any policy or regulation that restricts international trade. These may be embargos, import duties, import licenses etc. These barriers are the cause of low trade among SAARC states. Hinge Barriers on Security and Democracy In order to promote regional cooperation India bind the neighboring states in ties of different networks through the project of SAARC. India shares ethnic, language, cultural and religious histories. Harshe (2005) mentioned that India refused to attend the 13th summit of SAARC and the reason was shaped by two main factors. First, recently events occurred in Bangladesh such as attack on Sheikh Hasina, the deaths of Bilal-ud-din, a journalist and former finance minister Shah A.Kibria in two separate bomb blasts. Second, through suspension of the democratic and constitutional processes King Gyanendras seizures of power in Nepal also promoted India to refrain from sharing the platform with the Gyanendra regime.Spillover Effects of Crisis in Nepal The political system of Nepal is internally challenged by Maoists. Maoists have been trying but have not merely established their control over 40% of territory of Nepal, The Deuba regime failed to improve the law and order situation and tackle the Maoist rebels which in return gave King Gyanendra a pretext to take over the administration in Nepal. Nepal strategic location has high value for major powers. Since Nepal borders China and India, the dominant forces in Nepal therefore can prove crucial to either of these powers. Nepalis frontier is only 185 miles away from New Delhi. That is why Indias stability and friendship with Nepal is essential to strengthen its security. Inadequate Security Environment Two vast areas of illicit opium production namely Golden crescent and Golden Triangle constitute problems to health security. The threat of terrorism also constitutes challenges to development cooperation from two leading countries Sri Lanka and Pakistan. A momentary semblance of peace in the sub-continent has been established with the ongoing talks to promote peace by Indo-Pakistan and the assurance of preventing any terrorist operation from its soil by President of Pakistan. Similarly, peace seems to escape Sri Lanka in spite of the three-year-old Oslo-initiated reconciliatory process between the Liberation Tigers of Tamil Eelam (LTTE) and government of Sri Lanka. The formation of joint mechanism comprising of the LTTE and the government to disburse funds in the tsunami-affected areas has been held as LTTE wants to monopolize post tsunami reclamation work in the northeast. It is easy to assuage the impact of terrorism by promoting dialogic processes in inter and intra-state civil societies within the SAARC countries. The success of SAARC is based upon the economic and commercial bonds among the SAARC member states. Indo-Pak Cooperation If both India and Pakistan focus on the economic aspects of their ties, the strain between both the countries may be mitigated. When the nuclear test was conducted in 1998 the trade among Indo-Pak peaked to $345 million. The highest Indian Exports to Pakistan was during the government of Musharraf (Taneja, 2004). India awarded the title of Most Favorite Nation (MFN) to Pakistan as a trading partner. India can export different kinds of minerals like iron ore, steel etc, and transport equipments like motorcycles, scooters and passenger cars etc. Moreover it can also export textile and number of agricultural products. Whereas, Pakistan contributes in the exports like fruits, spices, pulses, nuts etc to India. India is more powerful and strong in its economic conditions as compared to economy of Pakistan. Energy sector cannot be ignored to promote IndoPak Cooperation. Two Sided Conflicts and Tensions Prevailing among Countries. These are such conflicts that are between the member states or the neighboring states that may be due to the conflict in the laws and regulations that vary across the boundaries of the member states. These are the prudential regulations of each member state, such conflicts causes hindrance in the easy import and export of the trade essentials among the SAARC countries. Such conflicts can be handled by the mutual agreements among the SAARC member states. That will be beneficial for both of the bilaterally conflicting states. Centre for Promoting Ideas, USA www.ijbssnet.com 122India and Pakistan are the two prominent countries existing in the region, India and Pakistan are commonly known as traditional rivals, since 1947. The most important conflict is the Kashmirs issue. Pakistan, as a Muslim country, supports Kashmirs freedom slogan and this is the main reason why India opposes Pakistan strongly. The bitter relations between the countries were mounting day by day. Lack of trust between these two countries leads to low exports and imports. Trade relations are so weak. India supposes Pakistan as a terrorists country for no reason. Wars of 1965, 1971 and Kargil war were broke between Pakistan and India. The conflicts between these two countries are still unsolved. Governments at both sides are trying to solve the problems and to improve trade relations for this purpose. Many policies are made but it is hard to implement these policies until the most important factor trust will remain absent. Struggles should be made by the higher authorities to create a trustworthy relationship between these two countries. India and Sri Lanka System relating to caste-inferiority of mankind was very common in Srilanka in 1980s.India made many efforts to resolve this conflict in 1983.Indian government started to compassionate a specific class in Srilanka (Tamils) that raised many conflicts between these two countries. India was in favor of Tamils. India sent IPKF (Indian peace keeping force) in Srilanka to support Tamils that was displeasing for Srilanka and thus, Srilankans demanded for the termination of IPKF. In 1990, India started to help Srilankan government as a whole without keeping in view the specific class. The negative thinking of Srilankans about Indians was reduced to some extent and they started cooperation with each other. India and Bangladesh When Pakistan was established, India started supporting the East Pakistan (now Bangladesh).There are many conflicts exist between India and Bangladesh. Disputes were arisen on Farrakka barrage, on river island of Mahurichar, on building fence on the international border by India. All these issues are still unsolved. India opposed Bangladesh of being compassionate to Pakistan whereas Bangladesh blamed India for helping its specific states rebels. India and Nepal There were bitter relationships between India and Nepal. Many of the conflicts were not resolved. There relations were so unfriendly when SAARC was constituted. Indian government opposed Nepals step towards gaining atomic energy i.e. weapons from China. Indian government was afraid that if Nepal did so then it will lose its hold from Katmandu. The dispute between India and Nepal was very prominent but it had no affect on Indo Nepal relations. India supported Nepal when its political and economic condition was declining. Thus the relations between these two countries were made strong by their governments. (Khan et al., 2007) Political Issues Relating to SAARC SAARC does not interfere in the internal affairs of its member countries. It paid attention towards the major issues. In its 12th and 13th meeting, discussions were made for the better relationships of all SAARC countries. In a nutshell, SAARC is responsible for establishing strong trade relationships among its countries. Many conflicts are therefore exists among them on several issues. The higher authorities are trying to solve these problems and work for their better prospects. Facilitations to Trade among SAARC As there are a lot of obstacles in trade, that creates hindrance in the ways to imports and exports across the regional boundaries. Similarly, there are various ways to facilitate the trade across the member states, these facilitations may be provided by the governmental regulations or by the management of the SAARC. These facilitations help to promote as well as try to remove the obstacles in the way to trade among the SAARC member states. Promotion of trade under various prospects includes: political measures, competitive measures, trade integration. Political and Economic Measures Combined efforts of Pakistan and India facilitate trade by solving political and economic issues. Their combined efforts improve trade by eliminating visa problems, tariff and nontariff obstacles, by exploring various other routes of trades and by developing relations among financial institutions. These efforts also help their nationals in performing their religious norms by clearing the path between Lahore and Amritsar where Nankana sahib is located (one of the religious leader of Sikh population all over the world).By the collaboration of Pakistan and India the amusement among both the countries is also enhanced by the permission of Indian films show in Pakistan cinemas

ASSOCIATION OF SOUTHEAST ASIANThe Association of Southeast Asian Nations is a political and economic organization of ten Southeast Asian countries. It was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Since then, membership has expanded to include Brunei, Cambodia, Laos, Myanmar (Burma), and Vietnam. Its aims include accelerating economic growth, social progress, and sociocultural evolution among its members, protection of regional peace and stability, and opportunities for member countries to resolve differences peacefully.

ASEAN covers a land area of 4.4 million square kilometers, 3% of the total land area of the Earth. ASEAN territorial waters cover an area about three times larger than its land counterpart. The member countries have a combined population of approximately 625 million people, 8.8% of the world's population. In 2015, the organization's combined nominal GDP had grown to more than US$2.6 trillion. If ASEAN were a single entity, it would rank as the seventh largest economy in the world, behind the US, China, Japan, Germany, France and the United Kingdom.In their relations with one another, the ASEAN Member States have adopted the following fundamental principles, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976:Non-interference in the internal affairs of one another Settlement of differences or disputes by peaceful manner;Renunciation of the threat or use of force; and Effective cooperation among themselves.ASEAN EMBLEMGuidelines on the Use of the ASEAN Emblem The ASEAN Emblem shall be the official emblem of ASEAN. The ASEAN Emblem represents a stable, peaceful, united and dynamic ASEAN. The colours of the Emblem -- blue, red, white and yellow -- represent the main colours of the state crests of all the ASEAN Member States. The blue represents peace and stability. Red depicts courage and dynamism, white shows purity and yellow symbolises prosperity. The stalks of padi in the centre of the Emblem represent the dream of ASEAN's Founding Fathers for an ASEAN comprising all the countries in Southeast Asia, bound together in friendship and solidarity. The circle represents the unity of ASEAN. The ASEAN Emblem is the reserved copyright of ASEAN.Use of the ASEAN Emblem The ASEAN Emblem shall be used in a manner that promotes ASEAN and its purposes and principles. It shall not be used for political purposes or for activities that harm the dignity of ASEAN. The ASEAN Emblem shall not be used for commercial purposes unless the entities concerned obtain official approval through the procedures stipulated in Article A.4.

ASEAN COMMUNITYThe ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies.At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established.At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Each pillar has its own Blueprint, and, together with the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for an ASEAN Community 2009-2015.ASEAN may engage with entities which support the ASEAN Charter, in particular its purposes and principles. ParliamentariansASEAN Inter-Parliamentary Assembly (AIPA) Think Tanks and Academic InstitutionASEAN-ISIS NetworkASEAN Institute for Peace and Reconciliation (AIPR)

Accredited Civil Society Organizations (CSOs)List of ASEAN-Accredited Civil Society Organization (as of 11 May 2015)

Other StakeholdersASEAN Supreme Audit Institutions (ASEANSAI)Federation of Institutes of Food Science and Technology in ASEAN (FIFSTA)Southeast Asian Fisheries Development Centre (SEAFDEC)Working Group for an ASEAN Human Rights Mechanism

EXTERNAL RELATIONS WITH OTHER COUNTRIESASEAN maintains its external relations with other countries which are not a part of its organization with countries namely Australia, Canada, China, European Union, India, Japan, ROK, New Zealand, Russia, United States UNDP, Pakistan.

ASEAN-INDIA DIALOGUE RELATIONSASEAN-India dialogue relations have grown rapidly from a sectoral dialogue partnership in 1992 to a full dialogue partnership in December 1995. The relationship was further elevated with the convening of the ASEAN-India Summit in 2002 in Phnom Penh, Cambodia. Since then the ASEAN-India Summit has been held annually. All these took place in a decade, which clearly signifies the importance of the dialogue partnership to ASEAN and India and the progress made in the cooperation. At the ASEAN-India Commemorative Summit held on 20 December 2012 in New Delhi, India, the Leaders adopted the ASEAN-India Vision Statement and declared that the ASEAN-India Partnership stands elevated to a Strategic Partnership.Political and Security CooperationSince India became a Dialogue Partner of ASEAN, the collaboration has transcended the realm of functional cooperation to cover political and security dimensions. India participates in a series of consultative meetings with ASEAN under the ASEAN-India Dialogue Relations, which include Summit, ministerial meetings, senior officials meetings, and meetings at experts level, as well as through dialogue and cooperation frameworks initiated by ASEAN, such as the ASEAN Regional Forum (ARF), the Post Ministerial Conference (PMC) 10+1, the East Asia Summit (EAS),Mekong-Ganga Cooperation and Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC), which help contribute to enhancing regional dialogue and accelerating regional integration.As a reflection of the interest of ASEAN and India to intensify their engagement, the ASEAN-India Partnership for Peace, Progress and Shared Prosperity, which sets out the roadmap for long-term ASEAN-India engagement, was signed at the 3rd ASEAN-India Summit on 30 November 2004 in Vientiane, Lao PDR. A Plan of Action (2004-2010) was also developed to implement the Partnership. The 7th ASEAN-India Summit held in October 2009 also noted with satisfaction the steady progress of implementation of the ASEANIndia Partnership for Peace, Progress and Shared Prosperity. The Summit also agreed on a new and more enhanced phase of the Plan of Action to implement the said Partnership in order to seize the opportunities and overcome the challenges arising from the global financial crisis and evolving political and economic landscape. Subsequently, the new ASEAN-India Plan of Action for 2010-2015 was developed and adopted by the Leaders at the 8th ASEAN-India Summit in October 2010.Following the entry into force of the ASEAN Charter, and based on the strong foundation of the ASEAN-India Dialogue Relations, India has accredited its Ambassador to ASEAN based in Jakarta, particularly to work closely with the Committee of Permanent Representatives to ASEAN (CPR) and the ASEAN Secretariat. At the 10th ASEAN-India Summit on 9 October 2012 in Bandar Seri Begawan, India announced its intention to establish a separate Diplomatic Mission to ASEAN with a Resident Ambassador as an illustration of the intensification of the ASEAN-India Strategic Partnership.ASEAN and India marked the 20th anniversary of their Dialogue Relations in 2012 with a Commemorative Summit held in India on 20 December 2012. A number of commemorative activities were carried out to signify the expanding and deepening of the Dialogue Partnership.In this connection, the ASEAN-India Eminent Persons group (EPG) was established to take stock of ASEAN-India relations over the past 20 years, explore ways to widen and deepen existing cooperation between ASEAN and India, as well as recommend measures to further strengthen ASEAN-India relations in the future, taking into account existing documents signed/adopted by both sides, as well as key ASEAN documents, particularly the ASEAN Charter, Roadmap for an ASEAN Community, the three Blueprints of the ASEAN Community and other relevant documents. The Report of the AIEPG was submitted to the 10th ASEAN-India Summit in November 2012 in Phnom Penh, Cambodia. In this regard, the Leaders tasked the Ministers to consider the report thoroughly and to implement the key recommendations where appropriate.ASEAN SUMMIT Twenty sixth ASEAN Summit,Kuala Lumpur & Langkawi, Malaysia, 26-28 April 2015. Twenty fifth ASEAN Summit, Nay Pyi Taw, Myanmar, 11-13 November 2014 Twenty fourth ASEAN Summit, Nay Pyi Taw, Myanmar, 10-11 May 2014 Twenty third ASEAN Summit, Bandar Seri Begawan, Brunei Darussalam, 9-10 October 2013 Twenty second ASEAN Summit, Bandar Seri Begawan, Brunei Darussalam, 24-25 April 2013 Twenty first ASEAN Summit, Phnom Penh, Cambodia, 18 November 2012 Twentieth ASEAN Summit, Phnom Penh, Cambodia, 03-04 April 2012 Nineteenth ASEAN Summit, Bali, Indonesia, 14-19 November 2011 Eighteenth ASEAN Summit, Jakarta, 7-8 May 2011 Seventeenth ASEAN Summit, Ha Noi, 28-30 October 2010 Sixteenth ASEAN Summit, Ha Noi, 8-9 April 2010 Fifteenth ASEAN Summit, Cha-Am Hua Hin, Thailand, 23-25 October 2009 Fourteenth ASEAN Summit, Cha-am, Thailand, 26 February - 1 March 2009 Thirteenth ASEAN Summit, Singapore, 18-22 November 2007 Twelfth ASEAN Summit, Cebu, Philippines, 9-15 January 2007 Eleventh ASEAN Summit, Kuala Lumpur, 12-14 December 2005 Tenth ASEAN Summit, Vientiane, 29-30 November 2004 Ninth ASEAN Summit, Bali, 7-8 October 2003 Eighth ASEAN Summit, Phnom Penh, 4-5 November 2002 Seventh ASEAN Summit, Bandar Seri Begawan, 5-6 November 2001 Fourth Informal Summit, Singapore, 22-25 November 2000 Third Informal Summit, Manila, 27-28 November 1999 Sixth ASEAN Summit, Ha Noi, 15-16 December 1998 Second Informal Summit, Kuala Lumpur, 14-16 December 1997 First Informal Summit, Jakarta, 30 November 1996 Fifth ASEAN Summit, Bangkok, 14-15 December 1995 Fourth ASEAN Summit, Singapore, 27-29 January 1992 Third ASEAN Summit, Manila, 14-15 December 1987 Second ASEAN Summit, Kuala Lumpur, 4-5 August 1977 First ASEAN Summit, Bali, 23-24 February 1976

STRATEGIC IMPORTANCE OF ASEAN FOR INDIAVolume of trade and investment flows between ASEAN and India remained relatively low compared with other dialogue partners of ASEAN. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$ 2.9 billion in 1993 to US$ 12.1 billion in 2003.The total trade between ASEAN and India decreased by 5.4 per cent, from US$71.8 billion in 2012 US$67.9 billion in 2013. At the 10th ASEAN-India Summit in November 2012, the Leaders set the target ofUS$100 billion by 2015 for ASEAN-India trade. Foreign direct investments (FDI) from India fell by 41 per cent from US$2.2 billion in 2012 to a little more than US$1.3 billion in 2013, while previous year rebounded from negative US$ 1.7 billion.Acknowledging this trend and recognizing the economic potential of closer linkages, both sides recognized the opportunities for deepening trade and investments, and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN-India Free Trade Area.At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a sound basis for the establishment of an ASEAN-India Free Trade Area (FTA), which includes FTA in goods, services and investment.ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009 after six years of negotiations. The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the worlds largest free trade areas (FTA) - market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see tariff liberalization of over 90% of products traded between the two dynamic regions. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest. The ASEAN-India TIG Agreement entered into force on 1 January 2010.During the 10th ASEAN-India Summit in November 2012, the ASEAN-India Leaders tasked their economic ministers to step up their efforts and flexibility to conclude the ASEAN-India Trade in Services and Investment Agreement at the earliest. Subsequently, an announcement on the conclusion of the negotiations on both Agreements on ASEAN-India Trade in Services and Investment was made at the ASEAN-India Commemorative Summit on 20 December 2012. By January 2015, the Agreement has been signed by all ASEAN Member States and India. The Agreement will enter into force in July 2015.

ASEAN and India are also working on enhancing private sector engagement, including the re-activation of the ASEAN-India Business Council (AIBC), the holding of the first ASEAN-India Business Summit (AIBS) and an ASEAN-India Business Fair and Conclave (AIBFC) held in New Delhi on 2-6 March 2011 with participation of an estimated 500 trade exhibitors, business leaders, practitioners and entrepreneurs from ASEAN and India to showcase their products and services. The 2nd AIBF was held at the sidelines of the ASEAN-India Commemorative Summit, in New Delhi on 18-20 December 2012. The events were part of the efforts to stimulate trade and business-to-business interaction.The 14th ASEAN Transport Ministers (ATM) Meeting on 6 November 2008 in Makati, Metro Manila, Philippines adopted the ASEAN-India Aviation Cooperation Framework, which will lay the foundation for closer aviation cooperation between ASEAN and India. In 2012, India participated for the first time in the 21st ASEAN Land Transport Working Group (LTWG) Meeting. During the Meeting, India presented her initiatives for enhanced cooperation on ASEAN Action Plan, covering various sectors such as land transport, maritime transport, border management, customs, immigration, logistics and safety and Public Private Partnership (PPP).The IndiaMyanmarThailand Trilateral Highway Project and its extension to Laos and Cambodiais one of current proposed projects to achieve greater ASEAN-India physical connectivity. The project is planned to connect the ASEAN Highway Network with the highway system in eastern India. Further on connectivity, the 10th ASEAN-India Summit welcomed the establishment of Indias Inter-Ministerial Group on Connectivity and encouraged regular exchanges between the Group and the ASEAN Connectivity Coordinating Committee (ACCC) to explore concrete ways and means to support the MPAC, in particular in areas where India has strong expertise and interest. The 1st ASEAN-India ACCC Meeting was held in Balikpapan, Indonesia. The Meeting served in providing a format for expeditious exchange of information to facilitate decision making on broad project proposals and ideas mentioned in the numerous studies on ASEAN-India Connectivity.

Significant developments can also be seen in the cooperation in the agriculture and forestry sector as ASEAN and India have successfully held the first and second ASEAN-India Ministerial Meeting on Agriculture and Forestry on 8 October 2011 in Jakarta, Indonesia and on 17 October 2012 in New Delhi, India, respectively. The Ministers adopted the Medium Term Plan of Action for ASEAN-India Cooperation in Agriculture (2011-2015) with the view to promoting and intensifying cooperation in the agriculture and forestry sector between ASEAN and India, in order to meet the challenges of food security, to exchange information and technology, to cooperate on research and development projects, to encourage agriculture and forestry-related industries, and to strengthen human resources development. A number of cooperative activities in this areas have been carried out, most notably the ASEAN-India Agri-Expo and the Symposium onIndo-ASEAN Export Potential of Agriculture Products that were organised on 17 19 October 2012 and 18 October 2012, respectively, in New Delhi; publication of the regular edition of the ASEAN-India Newsletter on Agriculture and Forestry since 2012; ASEAN-India Farmers Exchange Program; and the Conference of Heads of Agriculture Universities and Research Institutions of India and ASEAN organised on 18-21 February 2013 in New Delhi.

MAJOR ACHIEVEMENTS FOODAcknowledging the important of food security to keep the stability, and prosperity of the region, the ASEAN Member States signed the Agreement on ASEAN Food Security Reserve (AFSRB) in 1979. Under the Agreement, each ASEAN Member State should establish an ASEAN Emergency Rice Reserve (AERR), a sum total of the basic food stock (rice) maintained by each Member Country within its national border. Presently, the total earmarked quantity for the AERR stands at 87,000 metric tons.

Two projects related to food security are being implemented under the AMAF+3 mechanism, namely: East Asia Emergency Rice Reserve (EAERR) and the ASEAN Food Security Information System (AFSIS).

In response to the recent developments of soaring food prices, global financial crisis and an increasing concern on food security in the ASEAN region, the Thirtieth (30th) Meeting of AMAF held in Hanoi on 23 October 2008 endorsed the ASEAN Integrated Food Security (AIFS) Framework and Strategic Plan of Action on ASEAN Food Security (SPA-FS) with the main goal of ensuring long-term food security and to improve the livelihoods of farmers in the ASEAN region. The 14th ASEAN Summit, held on 26 February 1 March 2009 in Cha-am, Thailand had adopted the AIFS Framework and SPA-FS and issued a Statement of which the Leaders pledge to embrace food security as a matter of permanent and high priority policy and to encourage partnership with concerned institutions and agencies, dialogue partners and international organisations to pursue this important endeavour.Food handling

ASEAN established the ASEAN General Guidelines on the Preparation and Handling of Halal Food in the view to further expand intra-ASEAN trade in meat and meat-based products. The Guidelines was prepared based on and in line with the Association of Religious Ministers of Brunei Darussalam, Indonesia, Malaysia and Singapore (MABIMS) Guidelines for Preparation of Food and Drink for Muslims and Codex General Guidelines for Use of the Term Halal. The Guidelines serves as a practical reference for food industry in the production and handling of halal food for more effective presence in the regional and international market.Food Safety

ASEAN has developed the ASEAN Food Safety Network website (www.aseanfoodsafetynetwork.net) to provide useful information on food safety, such as SPS measures of various countries, issues in the international standards setting bodies (Codex, OIE, IPPC, etc.) as well as the works of various ASEAN bodies related to food safety.

AGRICULTUREIncreasing of consumers awareness on food safety has prompted ASEAN to give strong attention on the use of agrochemical that resulted residues on treated agricultural produces. Works have been done to harmonies maximum residual levels (MRLs) of pesticides in agricultural products that are traded in the region. To date, AMAF has adopted a total of 802 ASEAN harmonized MRLs for 63 pesticides.

Another step forward in the regional effort to control pesticide use to improve marketability of agricultural products and prevent environmental degradation is the establishment of pesticide database and network among ASEAN Member States. Through the coordination of Malaysia, the ASEAN website for pesticides regulatory authorities aseanpest

(http://agrolink.moa.my/doa/aseanpest) provides a platform for sharing of information and databases as well as to allow for discussion, identification, prioritization, implementation and resolution of problems related to pesticide management. The website contains information and databases partly available to the general public, as well as some classified information and data accessible only to the regulatory authorities of ASEAN Member States.

With the objective to eliminate NTBs in the form of phytosanitary measures affecting ASEAN trade, the ASEAN Member Countries have finalized endemic pest list for rice-milled, citrus-fruit, mango-fruit, potato-tuber, and dendrobium orchids cut-flowers. Further works on harmonization of phytosanitary measures will be focused on the development of guidelines for harmonizing import procedures for the said commodities. AMAF during its 30th Meeting had adopted the ASEAN Phytosanitary (PS) Guidelines for the Importation of Rice-Milled.

ASEAN committed to enhance its international competitiveness of food and agriculture products to enable the region to be the leading producer of these products. A number of efforts have been undertaken in order to realise the Vision, including the enhancement of food control systems and procedures to assure the freer movement of safe, healthy and quality food within the region.

The ASEAN Good Agricultural Practices (ASEAN-GAP) for fresh Fruit and Vegetables has been developed and adopted as a standard for the production, harvesting and post-harvest handling of fruits and vegetables in the region. ASEAN had also developed the ASEAN Standards for Mango, Pineapple, Durian, Papaya, Pumelo, Rambutan, Mandarin, Lansium, Guava, Mangosteen and Watermelon to ensure that these commodities are available fresh to the consumers after preparation and packaging.

LIVE STOCKThe main barriers to develop the livestock industry in the region are the presence of infectious diseases in animals. Several animal diseases still afflict in some ASEAN Member Countries resulting on the economic loss. The diseases include: FMD, Classical Swine Fever, Newcastle Disease, and Avian Influenza. Recognizing that vaccination is the practical method to control the spread of these infectious diseases, ASEAN embarked on establishing standards for vaccines used in the livestock industry in the region to ensure that only vaccines which meet international standards for safety, efficacy, and quality are being used to protect animal health in the region. ASEAN also established several procedures and guidance related to vaccines productions which are published for the purpose of livestock industry in the region.

The resurgent outbreaks of Highly Pathogenic Avian Influenza (HPAI) remains a serious threat to the region and have drawn great attention of Member States to work closely and enhance their cooperation in strengthening animal diseases control programme, with priority diseases covered not just HPAI, but also included Foot and Mouth Disease (FMD), and Classical Swine Fever (CSF). Taking into consideration the various existing initiatives and activities as undertaken by Member States and several donor agencies in the attempt to control and eradicate transboundary animal diseased (TADs) in the region, the AMAF recognises the need for a well-coordinated multi-agency and multi-sectoral approach among Member States as well as with the various partners, to ensure complementary efforts in current and planned activities.Another effort to show ASEAN strong commitment and ownership in the regional disease control programme in the region is the establishment of the ASEAN Animal Health Trust Fund (AHTF). The ASEAN contribution for establishment of the ASEAN Animal Health Trust Fund (AAHTF) become an important signal to donor communities of ASEANs intention to facilitate and support long-term sustainability of animal disease control in the region. The Agreement for the Establishment of ASEAN Animal Health Trust Fund was signed by the AMAF in November 2006.In order to promote international trade in livestock, especially among the Member Countries, a number of ASEAN Criteria for Accreditation of Livestock and Livestock Products Establishment have been developed.

A number of cooperative projects and activities in fisheries have been implemented among others, Development of Aquaculture, ASEAN Network of Fisheries Post Harvest Technology (FPHT), Harmonisation of Fishery Sanitary and Phytosanitary (SPS) Measures, ASEAN-SEAFDEC Collaboration on Sustainable Fisheries Management in the Southeast Asia Region, and fisheries related projects under the ASEAN Australia Development Cooperation Programme (AADCP)To promote sustainable aquaculture, ASEAN developed the Manual on Good Shrimp Farm Management Practices, Harmonization of Hatchery Production of Penaeus monodon (tiger prawn) in ASEAN, and Manual on Practical Guidelines for the Development of High-health Penaeus monodon Broodstoc. These manual had been translated into national language in some Member States for easier reference for the fish farmers. ASEAN has also developed Guidelines on Development of Standard Operating Procedures (SOPs) for Health Certification and Quarantine Measures for the Responsible Movement of Live Food Finfish as a tool to reduce risks of fish diseases due to trans-boundary movement of live aquatic animals in the region.As part of the ASEAN efforts to promote regional and international trade of fish products through the implementation of HACCP, the Hazards Guide - A Guide to the Identification and Control of Food Safety Hazards in the Production of Fish and Fisheries Products in the ASEAN Region has been compiled to act as reference and provide detailed guidance to regulators, SMEs and other interested parties on fish and fish products related hazards, hazards control and food safety progammes.Collaboration between ASEAN and SEAFDEC for sustainable Fisheries development in Southeast Asia has been undertaken since 1998. A number of fisheries projects have been implemented throughout the years. To further enhance closer collaboration between the two organizations, ASEAN and SEAFDEC agreed to strengthen the implementation of regional fisheries programmes and mechanism by establishing the ASEAN-SEAFDEC Strategic Partnership (ASSP). Toward this end, a Letter of Understanding (LOU) on the ASSP has been signed by the Secretary General of ASEAN and Secretary General of SEAFDEC in November 2007.

ASEAN is implementing strategic alliances (SA) projects in the following enterprises: data and information, agricultural production and marketing, coconut-by-product, agro-ecotourism, beef farming, carrageenan, and marketing beans and pulses. Among these projects, the SA Project on Beef Farming has made significant progress with the signing of a MOU between Johor State Farmers Organisation and Krida Satwa Cooperative of Indonesia for trading of goats of Ettawa (Jafnapari).The ASEAN Cooperative Business Forum (ACBF) was established in 2006 with the objective to promote business linkages and trading among the potential agricultural cooperatives within ASEAN Member States, and to empower farmers, farmers groups and farmers organizations.

The ability of farmers to select, adapt and apply technologies plays a vital role in increasing agricultural production. ASEAN, in its efforts to educate their farmers has promoted and intensified the application of Integrated Pest Management (IPM), especially on fruits and vegetables as a comprehensive approach to improve crop quality and reduce crops losses. Development of training modules and regional trainings in Integrated Pest Management (IPM) in fruits and vegetables for agricultural extension officers are carried out by the ASEAN Member States. Under the title Think IPM and Take Action, basic information about the Integrated Pest Management (IPM) was published to assist extension workers build-up and strengthen their common understanding, which is essential in their working to help the farmers. ASEAN had also produced IPM training modules for durian, vegetable (cabbage & potato), rice, shallots, corn, mango, pamelo, and soybean.

In order to help national governments and non-governments organization in ASEAN to improve the effectiveness of the implementation of their national IPM programme, ASEAN established the ASEAN IPM Knowledge Network (http://ASEAN-IPM.searca.org). The IPM Knowledge Network is an initiative to accumulate the vast collection of knowledge capital on IPM that can be reused and shared by national IPM programmes in the ASEAN region. To do this, the ASEAN IPM established an electronic IPM Knowledge Management Facility, which ensures that IPM Knowledge is available at the point of need of programme implementers and policy makers. The ASEAN IPM Centre in the Philippines acts as the Database and Network Administrator. The Knowledge Hubs located in each ASEAN Member States are established and linked to the ASEAN IPM Centre.

Cooperation in the area of research and development in agriculture was started in 2005. A number of activities have been initiated including the establishment of the ASEAN Agricultural Research and Development Information System (ASEAN ARDIS), development of the ASEAN Directory of Agricultural Research and Development Centres in ASEAN, and the Guidelines for the Use of the Digital Information System.ASEAN acknowledged the importance of the agricultural biotechnology as a tool to increase food productivity on a sustainable basis. However, at the moment, there ispublic concern on the use of biotechnology that need to be addressed by the respective authorities. ASEAN adopted the Guidelines on the Risk Assessment of Agriculture-related Genetically Modified Organisms (GMOs). The Guidelines serve to provide ASEAN Member States with a common understanding and approach when conducting scientific evaluations for the release of agriculture-related GMOs.To enhance and strengthen the capacity building, ASEAN, in collaboration with the International Life Sciences Institute (ILSI) Southeast Asia has organized a series of training workshops on the use of the ASEAN Guidelines on Risk-Assessment of Agriculture-related GMOs for the regulators and decision makers. Three training workshops on Safety and Risk Assessment of Agriculture-related Genetically Modified Organisms (GMOs) were organized in Singapore (2001), Kuala Lumpur (2002), Bangkok (2003), and Jakarta (2004).

To develop the important aspects of regulating GMO, ASEAN is implementing initiative on ASEAN Genetically Modified Food Testing Network. The Initiative is to assist ASEAN Member States to better utilise existing national resources on genetic modification and food safety, as well as gain better access to information on developing GM testing capabilities for food.Agriculture and Forest Products Promotion

To promote trade in agriculture and forest products, ASEAN extended the implementation of the Memorandum of Understanding (MOU) on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme for the another five years, viz. 2004 to 2009. The MOU is used as a basis to pursue cooperation with the private sector and to coordinate joint positions on issues related to trade in ASEAN agriculture and forest products. The new MOU is now under consideration by the ASEAN Member States which will cover the following 11 products, Carrageenan and other Seaweeds, Cocoa, Coconut, Coffee, Forest Products (Timber and Non-Timber), Palm Oil, Peas and Beans, Pepper, Tapioca, Tea, and Tuna.

FORESTRYForest is a very important natural resource for the ASEAN region in terms of economical, environmental and socio-cultural benefits. The increase forest production, both in terms of quantity and quality, and increase exports using methods that are economically and environmentally sustainable are still challenges in ASEAN. ASEAN cooperation in forestry involves working with Dialogue Partners, international organizations and third-parties such as Australia, Germany, Sweden, and FAO have been undertaken to address priority issues in the region.

The promotion of sustainable forest management (SFM) is of the utmost interest and priority to ASEAN Member States. This has led to the formulation of guidelines where it can be used as references for Member States in developing their respective country-specific national criteria and indicators for sustainable forest management. In compliance with the international forestry reporting requirements on progress towards the achievement of sustainable forest management at the national and regional levels, the 29th AMAF Meeting on 1 November 2007 in Bangkok endorsed the followings: i) ASEAN Criteria and Indicators for Sustainable Management of Tropical Forests; ii) Monitoring, Assessment and Reporting Format for Sustainable Forest Management in ASEAN; and iii) ASEAN Guideline for the Implementation of IPF/IFF proposals for Action. Another reference used as a guide is the FAO Code of Practice for Forest Harvesting in Asia Pacific, which has been adopted by ASEAN to develop specific national codes and / or guidelines. The Ministers also declared the Ministerial Statement on Strengthening Forest Law Enforcement and Governance (FLEG) in ASEAN in view of reaffirming ASEANs commitment in combating illegal logging and its associated trade.

Under the ASEAN German Regional Forest Programme (ReFOP), the ASEAN Forest Clearing House Mechanism (CHM) had been established. It is recognised as an effective information tool, particularly in providing an electronic database and e-discussion template in support for activities of the ASEAN cooperation in forestry, ranging from forest certification process, ASEAN common position in international forest policy processes, implementation of CITES, and exchanging information on ASEAN herbal and medicinal plants and R&D matters.Following to the endorsement of ASEAN Criteria and Indicators for Sustainable Management of Tropical Forest by AMAF, an online Monitoring, Assessment and Reporting (MAR) format in the ASEAN Forestry Clearing House Mechanism (CHM) website had been developed. This regional system is designed to complement and strengthen current country reporting on MAR towards a comprehensive regional reporting in achieving sustainable forest management.

Promotion of conservation and sustainable use of natural resources is the main agenda of the ASEAN Cooperation in CITES. It includes protection of wild fauna and flora from illegal exploitation. This is shown through declaration of ASEAN Statement on CITES and endorsement of the ASEAN Regional Action Plan on Trade in Wild Fauna and Flora by the AMAF. As a tool in realising the commitments in the Statement, the ASEAN Wildlife Law Enforcement Network (ASEAN-WEN) was launched in December 2005. The Network involves officials from CITES Authorities, Customs, Police, Prosecutors, Specialized Governmental Wildlife-law Enforcement Organizations and other relevant national law enforcement agencies.

EMERGING AND CROSS CUTTING ISSUESIn the process of working towards an ASEAN Community, there are also emerging and cross-cutting issues where broader coordination needs to be achieved. The issues that have been identified include impact mitigation and adaptation of climate change to food, agriculture and forestry, Sanitary and Phytosanitary (SPS) measures that deal with human health and animal/ plant health/ diseases, multi-sectoral cooperation on public health issues, etc

PROBLEMS FACED BY SAARC & ASEAN Both political and economic reasons may compel the nations in the region to shy away from establishing a regional market agreement. The African National Congress (ANC) government, headed by Nelson Mandela, may not be as enthusiastic about regional cooperation as one may theoretically suppose. The Mandela government's first priority is to jump-start the country's shattered economy, for which it needs massive infusions of funds from Western investors and international agencies such as the World Bank. Naturally, its attentions then will be focused on the West. Furthermore, cultural reasons may also discourage South Africa's interest in regional cooperation. The ANC's decision making echelons are staffed with leaders who have little or no knowledge of South Asian countries. The exiles were mainly in Europe and are Western in orientation and by attitude. Even those who stayed back during apartheid had no direct contact with countries such as India. For many of them, India means little more than the Indian community in the country. They happily participate in India's festival of lights celebration if it means keeping the local Indians happy, but have hardly any idea of India's size and regional importance. South Asia provides a scenario of both hope and despair. The area must overcome a number of unfavorable factors before a trading bloc could become a reality. There is its asymmetry with India, larger than all the rest put together, something not to be discussed lightly, when 80 million Germans can sometimes terrify more than 200 million other Europeans. As has been remarked. It is instructive to move away from the obsession of taking resolution of Indian-Pakistani problems as the principal solution to South Asian progress. This is not to deny its importance. But the evolution and present state of India's relations with her other neighbors also have useful lessons. The suspicion and distrust that still permeate these nations should not be underestimated (Bhargave, 1994). India's inheritance of the mind-set of its British imperial predecessors and its display of insensitivity from time to time towards its neighbors' genuine concerns. South Asian countries need to establish an identity and ethos of their own, which can generate the necessary self-confidence. The traditional hostility between India and Pakistan is difficult to resolve. Pakistan was created by a partition on the basis of religion. History shows that such partitions establish an animus that is very difficult to remove. Ireland, Cj^prus, and, until recently, Palestine are the examples. Pakistan still faces an identity crisis, with the alleged security threat from India providing the necessary cement. Kashmir is a tangible focus with which public emotions can be whipped up. These underlying problems need to be attended to before market integration is feasible. The crucial problem to be addressed is that of security, not territory. As a first step, this means reversing the arms race which has cost both economies dearly. The maxim of arms limitation with verification is indeed applicable here. This is not an insurmountable task. India and Pakistan already have an enduring agreement on using Indus waters and have succeeded in demarcating most of their boundaries (Reddy, 1981). Economically speaking, the size of the market is an important determinant of market agreement success. In terms of population, the Indian Ocean rim market is large, comprising 1.3 billion customers. But the dominance of three countries in the region (India, Pakistan, and Bangladesh) should be noted. That means major industrial activity will take place in a few countries, the large ones, and perhaps South Africa. Bernhard Federer (975) reminds us: Empirical comparisons have shown that there is hardly a country with a population of 10 million which possesses its own automobile production, an aircraft industry or an industry manufacturing heavy capital goodsmechanical or electricalor a production of large electronic equipment within its own territory. The larger the economy, the greater is the probability that a country produces all the goods mentioned. Industrialized countries with a population of over 50 million generally produce all these.

CONCLUSIONThis literature supports the major contribution of SAARC in the promotion of trade. Discussion begins with basic trade agreements that play a very important role in the promotion of trade. These agreements give the detailed regulations for trade like the import and export duties etc. Replacement of SAFTA into SAPTA improved the trade regulations that better enable the member states to trade their essentials across the boundaries. The recent trade agreement between Pakistan and Afghanistan is a call to promote trade named as APTTA. Pakistan will make progress in its trade line and now is able to offer its goods globally. The main focus of the study is on the barriers and facilitations of trade among SAARC the main barrier to trade among SAARC includes policy hinge and security issues and the democratically issues that includes the spillover effects including smuggling of weapons, health security environment, issues of Indo-Pak corporation, and bilateral conflicts. Conflicts includes Kashmir issues, Kargil war, terrorism, issues of inferiority of mankind, displeasing Indian Peace Keeping Force, contention on Farraka barrage and atomic energy crisis. After these bilateral conflicts some of the most importantly affecting geopolitical and institutional hurdles are discussed in detail. Literature highlights the measures that enable the member state to maintain the trade relations. SAFTA provides detail list of facilitations of trade among the regional states that includes the legal regulations of this agreement. International Journal of Business and Social Science Vol. 2 No.10; June 2011 127. There should be strong trade relations among countries which contributes a lot towards their development. Trade centers are established in the countries where trade level is low. Policies are made and implemented for strengthening trade in various countries. Positive steps are taken including reducing taxes, duties and charges on imports and exports. World Trade Organization (WTO) worked for the enhancement of trade in under developed countries. Summing up the research study in only few words of a line, the most important role played in trade among SAARC is by SAFTA that gives detailed improved measures of trade and help the member states to precede their trade progressively and also give prompt measures to trade among SAARC. S. Wilson & Otsuki, 2007 also supported the research study. Limitations are the inappropriate policies of SAARC and the unfruitful amendments in the agreements of SAARC. Like the article 10 (general provision) of SAARC policy disallows the discussion of bilateral conflicts. It also includes the violation of democratic values of consensus like the postponement of 11th summit, scheduled to be held in November 1999(The Daily Independent, Dhaka December 26, 2001). Further research studies could highlight the changes in the existing agreements of trade among SAARC states as well as on the new trade promoting agreements of SAARC

REFERENCES: www.asean.org www.asean.org/news/item/overview-of-asean-india-dialogue-relations Dahi, O. S., & Demir, F. (2013). Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?.Applied Economics,45(34), 4754-4772. doi:10.1080/00036846.2013.804169 Jain, S. C., & Ghauri, P. N. (1996). COMMENTARY: Indian Ocean Rim Trade Bloc: Prospects and Problems.International Executive,38(5), 583-597. www.saarc-sec.org

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