SAARC After 1992: Disagreements and Differences

Abstract

This chapter explains the evolution of the organisation and its politics beyond the formative phase. The most important dimension of the evolution of the organisation in this phase was the decision to begin cooperation in core economic areas such as trade in goods and services, investment, finance etc. The most important initiatives in this context were the conclusion of the South Asian Preferential Trading Arrangement (SAPTA) and the SAARC Free Trade Area (SAFTA) agreements. This chapter illustrates the political and economic impetus for moving toward that direction and the constraints to implement the two flagship agreements of this phase of SAARC’s evolution. By explaining the constraints to implement the two agreements, it indeed explains the rise of differences and disagreements which culminated into the current stalemate in the organisation.