SAARC countries implement first tarrif cut from July 1, 2006
03 Jul '06
3 min read
The accord also stipulates that if actual tariff rates, once the agreement takes effect, are below 20 per cent, there will be an annual reduction on a margin of preference basis of 10 per cent on actual tariff for each of the two years added the official.
He said the LDCs - Bangladesh, Nepal, the Maldives and Bhutan - would reduce their existing tariff rates to 30 per cent by June 30, 2008.
If actual tariff rates on the date the agreement takes effect are below 30 per cent, there will be an annual reduction on a margin of preference basis of five per cent on actual tariff rates for each of the two years, he added.
He said the subsequent tariff reduction by the non-LDCs from 20 per cent or below 0-five per cent would be done within a second timeframe of five years beginning from the third year from the date the agreement takes effect.
However, the period of subsequent tariff reduction by Sri Lanka will be six years, said the official citing the SAFTA clauses.
Similarly, the subsequent tariff reduction by the LDCs from 30 per cent or below five per cent will be done within a second timeframe of eight years from the date of coming into force of the agreement.
Traders see the SAFTA opening new avenues of business in the region but say Pakistani traders would have do more than others to grab due market access and share.
Apart from SAFTA, our trade has registered a substantial with India, said Chaudary Muhammad Saeed, President Federation of Pakistan Chambers of Commerce and Industry. But it is highly in favour of India, so the trend shows how the traders have to design their policies to achieve the desired results.
He said a sharp jump in regional trade volume was expected after July 1, when the first downward revision in tariffs under the SAFTA was set in place.
marketing@alchempro.com
