Proposed FTA between Pak, Sri Lanka may derail Safta

With the second meeting of Saarc members to deepen tariff concessions under the preferential trading arrangement (Sapta) postponed, the regional bloc is unlikely to be able to keep its December deadline to finalise the draft of the proposed free trade agreement (FTA) for the region.

Official sources said the second meeting under the fourth round of Sapta was scheduled to be held in Kathmandu last week but was postponed until September on account of Pakistan conveying its inability to attend the meeting. Though Pakistan has cited preoccupation with its budget as reasons for not being able to attend the meet, sources said the real reason could be its keenness to push ahead with its proposed free trade treaty with Sri Lanka. If the FTA between the two countries is inked, the relevance of Sapta could be seriously marginalised since Sri Lanka already has an FTA with India. The delay could also affect the December deadline for finalising the draft of Safta since the committee of experts set up under the Saarc secretariat was to hold its meeting concurrently with the Sapta fourth round.