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Q102 (CDS-I/2015) International Relations & Global Affairs › International Organisations & Groupings › International trade regimes Answer Verified

Which of the following is not true for SAFTA (South Asian Free Trade Area) ?

Result
Your answer: —  Â·  Correct: D
Explanation

The South Asian Free Trade Area (SAFTA) is a trade liberalization regime [3] that came into effect on January 1, 2006 [1]. It was designed as a step toward higher levels of economic integration, including a potential customs union and common market [7]. However, the claim that SAFTA takes precedence over agreements with non-member states is incorrect. According to the official agreement text, contracting states explicitly affirm their existing rights and obligations under the Marrakesh Agreement (WTO) and other treaties to which they are signatories [6]. Furthermore, member countries remain independent to create other trade relations with non-member countries [3]. Therefore, SAFTA does not override external bilateral or multilateral commitments, but rather exists as a parallel initiative to such global trade liberalization efforts [4].

Sources

  1. [1] Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Contemporary South Asia > Peace and Cooperation > p. 42
  2. [3] https://www.un.org/ldcportal/content/south-asian-free-trade-area-safta
  3. [7] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.13 Free Trade Agreements (FTAs) and RCEP > p. 393
  4. [6] https://www.commerce.gov.in/wp-content/uploads/2020/05/safta.pdf
  5. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Free Trade Area (FTA) > p. 504
  6. [4] https://wits.worldbank.org/GPTAD/PDF/archive/SAFTA.pdf
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SIMILAR QUESTIONS

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