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SAARC Geopolitics and Trade

Author

Listed:
  • Pratiksha Chaturvedi
  • Zaki Hussain
  • Biswajit Nag

Abstract

The South Asian Association for Regional Cooperation (SAARC) region is bestowed with geographical, historical and cultural continuity and yet it remains one of the least integrated regions of the world. This article attempts to analyse the factors inhibiting the economic integration of the region. The intra-SAARC trade is analysed in view of the existence of a free trade agreement between the member nations. The socio-development, infrastructural and economic indicators of the nations are also compared. The reasons for the existence of mistrust and hostility between the SAARC countries are discussed, from India’s evident dominant position in the group as a cause for insecurity among other members to the political standoffs between the member nations. While there exists immense potential for greater economic integration and gains from trade, the lack of basic transport-transit connectivity, technical harmonisation and non-tariff barriers are found to reinforce trade costs and inhibit legal trade. Ensuring better connectivity is recognised as a prerequisite by the nations unanimously; however, their political differences have kept them away from making much headway in this regard.

Suggested Citation

  • Pratiksha Chaturvedi & Zaki Hussain & Biswajit Nag, 2015. "SAARC Geopolitics and Trade," South Asian Survey, , vol. 22(1), pages 78-106, March.
    • Handle: RePEc:sae:soasur:v:22:y:2015:i:1:p:78-106
    DOI: 10.1177/0971523117708963
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    References listed on IDEAS

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    1. Biswajit Nag & Anisha Nandi, 2006. "Analysing India.s Trade Dynamics vis-É-vis SAARC Members Using the Gravity Model," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 7(1), pages 83-98, March.
    2. Anjali Ramakrishnan & Poornima Varma, 2014. "Do free trade agreements promote intra-industry trade? The case of India and its FTAs," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 7(2), pages 129-144.
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    Cited by:

    1. Priyanshi Chauhan, 2021. "Power Trade in South Asia: Developing A Framework Based on Case Studies of Power Trading Arrangements in Europe and Asia," South Asian Survey, , vol. 28(2), pages 263-293, September.
    2. Khanindra Ch. Das, 2017. "International Connectivity Initiatives by China and India: For the Developing Countries," South Asian Survey, , vol. 24(2), pages 101-116, September.

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