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Safta: Living in a World of Regional Trade Agreements

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  • Jose Daniel Rodríguez-Delgado

Abstract

The paper evaluates the South Asia Free Trade Agreement (SAFTA) within the global structure of overlapping regional trade agreements (RTAs) using a modified gravity equation. First, it examines the effects of the Trade Liberalization Program which started in 2006. SAFTA would have a minor effect on regional trade flows and the impact on custom duties would be a manageable fiscal shock for most members. Second, the paper ranks the trade effects of other potential RTAs for individual South Asian countries and SAFTA: RTAs with North American Free Trade Agreement (NAFTA) and the European Union (EU) dominate one with the Association of South East Asian Nations (ASEAN).

Suggested Citation

  • Jose Daniel Rodríguez-Delgado, 2007. "Safta: Living in a World of Regional Trade Agreements," IMF Working Papers 2007/023, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/023
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    References listed on IDEAS

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    Cited by:

    1. Parakrama Samaratunga & Kamal Marunagoda & Manoj Thibbotuwawa, 2007. "Mapping and analaysis of the South Asian agricultural trade liberalization efforts," STUDIES IN TRADE AND INVESTMENT, in: Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA, volume 60, pages 33-74, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Bhattacharyya, Anushree & Chakraborty, Debashis, 2010. "India’s Recent Infrastructure Development Initiatives: A Comparative Analysis of South and Southeast Asia," MPRA Paper 23030, University Library of Munich, Germany.
    3. Hansa Jain, 2019. "Implications of SAFTA for Indian Economy: Trade, Compatibility and Welfare Effects," Foreign Trade Review, , vol. 54(4), pages 355-374, November.
    4. Moinuddin, Mustafa, 2013. "Fulfilling the Promises of South Asian Integration: A Gravity Estimation," ADBI Working Papers 415, Asian Development Bank Institute.
    5. Ward, Megan & Herr, Hansjörg & Pédussel Wu, Jennifer, 2020. "South Asian Free Trade Area and food trade: Implications for regional food security," IPE Working Papers 148/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    6. A. Ganesh Kumar & Gordhan Kumar Saini, 2007. "Economic co-operation in South Asia: The Dilemma of SAFTA and beyond," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2007-017, Indira Gandhi Institute of Development Research, Mumbai, India.

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