Baw.Grop Essay Example | Topics and Well Written Essays - 1500 words

Baw.Grop - Essay ExampleIf the trade bloc comprises of geographically proximate countries, the trade reason is known as regional trade agreement. Most of these trade agreements are done to enhance the clientele situation in a region by the coordination offered by each of the member states.Back in 2006, on the first day of January, the agreement on South Asia Free Trade Agreement came into force. come forward of their members India, Pakistan and Sri Lanka are known as Non Least development Contracting state (NLDCS) and Bhutan, Bangladesh, Maldives are Nepal are referred as Least Developed Contracting States (LDCS) (Commerce, n.d.). The member countries of this agreement are able to avail a outcome of trade opportunities which are specifically available to the member countries of this agreement. These agreements have emerged to promote multilateral trade with a commitment to offer higher(prenominal) rate of economic growth worldwide. However, the spread of these regional blocs has denied allowing the non member countries to replication the advantage of free trading. To enjoy the benefits of free trading which include enhanced resource allocation, improved level of efficiency, exposure to new innovative ideas, technologies and products the South Asia countries must ensure trade facilitation, economic cooperation to other Agreements and higher investment across the countries in that region. Despite of the fact that South Asia Association for regional Cooperation (SAARC) is being into humanity for the last 25 years, still in 2004, the percentage of intra regional trade was only of 4 % of the kernel trade amount (Kemal, 2004).In a review, World Bank has revealed that all the regional grouping does not boost the trade and enhance the growth automatically. Although, the objective of these regional trading groups is to promote inter regional trade and economic growth, a large no of groups fail to achieve the same (Kemal, 2004). SAFTA has allowed