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(April 28 2010): The heads of governments of the South Asian Association of Regional Co-operation (Saarc) are to ink the long-awaited pact on trade in services and draft on co-operation on environment at the two days’ Saarc Summit scheduled to start in Thimphu (Bhutan) from Wednesday April 28, 2010, official sources told Business Recorder.

The South Asian Association for Regional Co-operation (Saarc) is an economic and political organisation of eight countries in Southern Asia. In terms of population, its sphere of influence is the largest of any regional organisation: almost 1.5 billion people, the combined population of its member states. It was established on December 8, 1985 by Bangladesh, Bhutan, Maldives, Nepal, Pakistan, India and Sri Lanka. However, Afghanistan was also made member of the organisation a couple of years ago.

The heads of state and government of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka will be attending the Summit. Representatives from the observer states will also be attending the Summit. Currently, China, Iran, Japan, South Korea, Mauritius, Myanmar (Burma), Australia, United States, and European Union are Observers.

Giving details of the agreement to be signed at the Summit, sources said that South Asia Free Trade Agreement (Safta) was signed during the 12th Saarc Summit at Islamabad in January 2004 and has been in operation since July 2006. All Saarc Summits since 2005 have been impressing upon the signing of a well drafted agreement on ‘trade in services’. It was in this context that Safta committee of experts was constituted to draft the agreement which has since been finalised and is expected to be signed during the forthcoming Saarc Summit at Thimphu, Bhutan.

The salient features of the agreement are as follows:

(i) This agreement shall provide real and effective market access to all contracting states in an equitable manner;

(ii) negotiations for schedule of specific commitments shall take place keeping in view the national policy objectives, the level of development and the size of economies of contracting states both overall and in individual sectors;

(iii) in the light of the priority accorded to services by all contracting states, the agreement shall progressively cover liberalisation of trade in services with the broad-based and deeper coverage of majority of services sectors/sub-sectors with the view to fulfilling the objectives of Article V of GATS;

(iv) a positive list approach shall be followed. Negotiations for specific commitments for progressive liberalisation would be based on ‘request and offer’ approach;

(v) initial offers of the WTO member contracting states shall be in addition to their existing levels for multilateral commitments with substantial sectoral and modal improvement over those commitments; and;

(vi) the agreement and schedules of specific commitments shall be subject to review periodically.

With regard to the pact regarding co-operation on environment, sources said that Saarc Secretariat has circulated a draft Saarc (Convention/ Agreement/Treaty) on co-operation on environment which aims at promoting co-operation among the Saarc countries in the field of environment protection and sustainable development on the basis of equity, reciprocity and mutual benefit, keeping in view the policies and legislation in each members state.

The areas of co-operation, identified by the parties, are: (a) afforestation and reforestation, (b) air quality management, (c) biological diversity, (d) climate change, (e) coastal zone management, (f) coral reef management, (g) Eco-system management for sustainable livelihood, (h) exchange of knowledge, best practices and capacity building, (i) global environment issues, (j) land degradation and desertification, (k) mountain eco-system, glaciers and glacial lake including high altitude hydrological monitoring, (l) research, development and transfer of eco-friendly technology, (m) river cleaning program, (n) sea-water and fresh water quality management, (o) strengthening disaster management capabilities, (p) waste management, (q) wildlife conservation and combating illegal trade in wildlife and bio resources, (r) water resource management and conservation, and (s) watershed management.

Sources said that all stakeholders at the federal and provincial levels, including the Ministries of Foreign Affairs, Industries, Law, National Disaster Management Authority (NDMA), Government of Sindh (GoS), Government of Balochistan (GoB) and FATA secretariat have been consulted on the draft instrument.

Source: Business Recorder