SAFTA stands for:
South Asian Free Trade Agreement
Understanding SAFTA: South Asian Free Trade Agreement
The question asks for the full form of the acronym SAFTA. SAFTA is a well-known term in international relations and economics, particularly concerning South Asia.
What does SAFTA stand for?
SAFTA stands for the South Asian Free Trade Agreement. It is a trade agreement signed by the member states of the South Asian Association for Regional Cooperation (SAARC).
Analyzing the Options
Let's look at the given options and compare them to the correct full form:
- South Asia Fair Trade Agreement: This option uses "Fair Trade" instead of "Free Trade". While fair trade is a concept, it is not what SAFTA stands for.
- South Asian Foreign Trade Agreement: This option uses "Foreign Trade" instead of "Free Trade". SAFTA is a specific type of agreement, focusing on reducing barriers to trade among member nations, hence "Free Trade".
- South Asian Free Trade Agreement: This option correctly provides the full form of SAFTA.
- South Asia Foreign Trade Association: This option uses "Foreign Trade Association" instead of "Free Trade Agreement". SAFTA is an agreement, not an association focused on general foreign trade.
Based on the standard abbreviation, the correct expansion for SAFTA is South Asian Free Trade Agreement.
Purpose of SAFTA
The main objective of the South Asian Free Trade Agreement (SAFTA) is to reduce customs duties on most goods traded among member countries. This aims to promote and enhance trade relations and economic cooperation within the South Asian region.
Revision Table: Key SAFTA Terms
| Term | Explanation |
|---|---|
| SAFTA | South Asian Free Trade Agreement |
| SAARC | South Asian Association for Regional Cooperation (the framework under which SAFTA was negotiated) |
| Free Trade Agreement | An agreement between countries to reduce or eliminate barriers to trade, such as tariffs and quotas. |
Additional Information on South Asian Free Trade Agreement
The South Asian Free Trade Agreement (SAFTA) was signed in 2004 and came into force in 2006. The member countries of SAFTA are the same as the member states of SAARC:
- Afghanistan
- Bangladesh
- Bhutan
- India
- Maldives
- Nepal
- Pakistan
- Sri Lanka
The agreement aims to progressively reduce tariffs for all tradeable goods to zero by 2016, with some exceptions for sensitive lists maintained by each country.
Understanding SAFTA is important for students studying international trade, regional cooperation, and the economies of South Asian countries.
Important Questions from South Asia and the Contemporary World
Match List I with List II.
List-I List-II A. India-Pakistan I. LTTE B. India-Bangladesh II. Brahmaputra River C. India-Sri Lanka III. ASEAN D. Act East Policy IV. Tashkent Agreement Choose the correct answer from the options given below:
Which one of the following was the first country to liberalize its economy in the South Asian region?
In 1972, Shimla Agreement was signed by:
Rajiv Gandhi-Longowal Accord was signed in:
Which of the following statements are correct for SAFTA?
- (A) Fairly stable and peaceful.
- (B) Free trade zone for the whole of South Asia.
- (C) Sino-India relations improved.
- (D) Lowering Trade Tariffs.
Choose the correct answer from the options given below:
