Full membership to Afghanistan: Japan, China receive observer status

SAFTA set for January

FROM RANIL Wijayapala in Dhaka, Bangladesh

THE 13th summit of the South Asian nations ended here in Dhaka, Bangladesh yesterday with the seven South Asian nations pledging to implement the South Asian Free Trade Agreement from January 1, 2006.

The leaders also decided to admit neighbouring Afghanistan as a full member of the SAARC family and offer observer status to Asian economic giants China and Japan.

"The launching of SAFTA would mark an important milestone on the road to a South Asian Economic Union," the Dhaka Declaration issued at the end of the Summit stated.

The SAFTA was signed at the last SAARC summit in Islamabad in January 2004, with January 1, 2006 set as a deadline for implementation.

The leaders resolved that negotiations on outstanding issues should be completed by the end of this month. They also directed that the necessary national procedures should be completed in time to facilitate the operationalisation of the agreement.

The leaders from the seven countries (Bangladesh, Sri Lanka, India, Pakistan, Bhutan, Nepal and Maldives) also called for expanding the scope of SAFTA to include trade in services, enhanced investment and harmonised standards.

"We have decided to make every possible effort to see that the SAFTA Agreement enters into force by January 2006. Agreements have been signed to facilitate trade among the SAARC countries. We have agreed to conclude the Agreements on Mutual Recognition of Standards early.

We have also decided to remove no-tariff and para-tariff barriers and encourage investment," Bangladesh Prime Minister Begum Khaleda Zia told a press briefing soon after the SAARC Summit closing ceremony.

"I am happy to announce that SAARC leaders have admitted Afghanistan as a full member of the SAARC subjected to completion of formalities," Zia told the media at the International Conference Centre in Dhaka.

"We have also decided to accord observer status to the People's Republic of China and Japan in the SAARC," she said adding that modalities in this regard will be finalised by the SAARC Council of Ministers at its meeting to be held in July next year.

Asked the what benefits the SAARC expecting from offering the observer status to Japan, the Bangladesh Premier said SAARC and Japan can help each other through this measure. She also noted that Japan was a major donor to the SAARC region.

Indian Prime Minister Dr. Manmohan Singh also hailed the decision taken by SAARC leaders to offer full membership to Afghanistan and observer status to Japan and China.

SAARC nations on a proposal mooted by Bangladesh also agreed to proclaim the coming decade from the year 2006 to 2015 as the Decade for Poverty Alleviation.

"We have endorsed 22 directives to implement the SAARC Plan of Action for Poverty Alleviation," the Bangladesh Premier added.

The leaders of the seven countries also agreed on joint strategies for combatting terrorism at the 13th SAARC Summit which ended here yesterday. They also focused on setting up a disaster preparedness centre in the Indian capital.

The 14th SAARC summit will be held in India in 2007.

The leaders of SAARC countries endorsed the SAARC declaration envisaging 53 issues in the areas of regional cooperation, poverty alleviation, funding mechanisms, advancing economic cooperation, South Asia's social challenges, environmental challenges and natural disasters, combating of terrorism, security of small states, people to people contact and cultural cooperation , international political and economic environment, and enhancing political cooperation.

Khaleda Zia, Prime Minister of Bangladesh and Chairperson of SAARC, Lyonop Sangay Ngedup, Prime Minister of Bhutan, Dr. Manmohan Singh, Prime Minister of India, Maumoon Abdul Gayoom, President of Maldives, Gayendra Bir Bikram Shah, King of Nepal, Shaukat Aziz Prime Minister of Pakistan and Chandrika Bandaranaike Kumaratunga President of Sri Lanka who met at the State Guest House in Jamuna took these decisions during their retreat.

The SAARC leaders also signed Agreements on Mutual Administrative Assistance in Customs Matters, Establishment of SAARC Arbitration Council, and Limited Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters during the 13th SAARC summit.