| South Asia Free Trade Agreement | | | | replaces earlier South Asia Preferential Trade |
| The South Asia Free Trade Agreement (SAFTA) | | | | Agreement (SAPTA), and many speculate that it |
| includes Bangladesh, Bhutan, India, Maldives, Nepal, | | | | may lead to a South Asia Economic Union in the |
| Pakistan and Sri Lanka. It became operational in 1 | | | | future (SAFTA, 2006). |
| January 2006 with the purpose of reducing tariffs for | | | | Purpose of SAFTA |
| intraregional trade among the member nations. | | | | The purposes and aims of SAFTA are to "promote |
| Implementation will be on a sliding scale with Pakistan | | | | and enhance mutual trade and economic cooperation |
| and India to fully implement by 2012, Sri Lanka by | | | | among Contracting States by |
| 2012, and the remaining countries by 2015. SAFTA | | | | |