Regional Integration in South Asia

Mohammad A Razzaque is Adviser and Head, International Trade Policy Section at the Commonwealth Secretariat. His primary area of work includes applied trade policy analysis. He has written extensively on trade and development issues, edited several volumes, and managed a number of multi-country trade policy projects. Yurendra Basnett is a Research Fellow in the International Economic Development Group of the Overseas Development Institute (ODI), London. He leads ODI’s research and technical advisory work on trade and economic development policies.

• ForewordList of tables, figures and boxesAbbreviations and acronyms1. Regional Integration in South Asia: An Overview by Mohammad A Razzaque and Yurendra Basnett1.1 Background 1.2 About this volume1.3 Taking forward South Asian integration: An agenda for immediate actionPART I. LOOKING AT THE HORIZON: POTENTIAL GAINS2. Has South Asia Benefitted from Growth in India? by Rashmi Banga2.1 Introduction2.2 Brief review of existing literature2.3 Trends in growth rates in India and the rest of South Asia2.4 Are the growth rates linked?2.5 India’s growth linkages with countries in South Asia2.6 Conclusions and policy implications3. Assessing Gains from SAFTA by Selim Raihan and Mohammad A Razzaque3.1 Introduction3.2 The pattern of South Asian intra-regional trade3.3 Potential implications of SAFTA: Review of qualitative and quantitative studies3.4 The welfare impact of SAFTA considering improved trade facilitation measures in South Asia3.5 Conclusion4. The Cost of Economic Non-Co-operation in South Asia by Bipul Chatterjee and Joseph George4.1 Introduction4.2 Potential impacts of SAFTA on consumer welfare: A quantitative assessment4.3 Perceptions and expectations about regional economic co-operation in South Asia4.4 Conclusions5. Building Regional Supply Chains in South Asia: The Case of the Textiles and Clothing Sector by Rashmi Banga and Mohammad A Razzaque5.1 Introduction5.2 A brief review of the literature5.3 Methodology for identifying potential supply chains5.4 Implications on potential supply chains5.5 Policy implicationsPART II. KEY AREAS FOR CO-OPERATION6. Non-tariff Barriers in South Asia: Nature and Modalities to Address the Attendant Issues by Mustafizur Rahman and Mohammad A Razzaque6.1 Introduction 6.2 Non-tariff barriers: Concept and typology6.3 Non-tariff barriers in South Asia6.4 Cross-country experience in resolving non-tariff barriers6.5 Dispute settlement mechanisms in SAFTA and its efficacy: SAFTA committee of experts6.6 Policy initiative to address the NTBs6.7 Concluding remarks7. Dealing with Non-tariff Barriers in South Asia by Jodie Keane, Jane Kennan, Sheila Page and Christopher Stevens7.1 Introduction7.2 Significant barriers to trade7.2.1 Choosing priorities7.3 Models of non-trade barrier monitoring and trade surveillance7.4 Conforming to regulations and standards7.5 Upgrading producers in meeting standards: Lessons from regional economic communities7.6 Linking non-trade barrier monitoring and surveillance mechanisms to dispute resolution mechanisms: lessons from regional economic communities7.7 Conclusions8. Regional Investment Co-operation in South Asia by Khondaker G Moazzem8.1 Background8.2 Foreign direct investment in South Asia: A brief overview8.3 An overview on Foreign Direct Investment-related policies of South Asian countries8.4 Institutional approach for enhancing regional investment: An analysis of SAARC initiatives8.5 Experience of ASEAN towards enhancing regional investment: Learning for SAARC8.6 Suggestions for accelerating SAARC’s institutional initiatives for enhancing intra-regional investment in South Asia8.7 Conclusion9. Regional Trade in Services in South Asia by Selim Raihan9.1 Introduction9.2 Overview of the services sector in South Asia9.3 Experiences of South Asian countries in General Agreement on Trade in Services negotiations9.4 Services trade liberalisation negotiations in South Asia9.5 Domestic preparedness of services trade liberalisation in South Asia9.6 Concluding remarks10. Connectivity and Regional Co-operation in South Asia by Prabir De10.1 Introduction10.2 An overview of regional connectivity in South Asia10.3 Challenges to regional connectivity10.4 Vision of an integrated South Asia: The regional co-operation agenda10.5 Conclusions11. Productive Integration of Least Developed Countries into Regional Supply Chains: The Case of South Asia by John Serieux11.1 Introduction11.2 Major constraints to least developed countries’ participation in regional supply chains11.3 Policies and programmes to improve the conditions for the operation of supply chains 11.4 South Asian least developed countries in context11.5 Conclusion12. International Trade, Regional Integration and Food Security in South Asia by Ramesh Chand12.1 Introduction12.2 South Asia in a global setting12.3 Hunger and nutrition12.4 Production, consumption and surplus at regional level12.5 Country-wise production, domestic use and surplus/deficit12.6 International trade at regional and country level12.7 Price and market integration12.8 Trade liberalisation: Potential and constraints12.9 The way forward13. Promoting Regional Energy Co-operation in South Asia by Leena Srivastava, Neha Misra and Shahid Hasan13.1 Introduction13.2 Challenges faced by the subregion13.3 Regional co-operation: Historical context and ongoing efforts13.4 Encouraging the potential for subregional energy co-operation: A suggested approach13.5 Conclusions14. Commodities Super-cycle: Implications for South Asia by Machiko Nissanke and Sophie van Huellen14.1 Introduction14.2 South Asia’s role in commodity trade14.3 Implications of the super-cycle for South Asia14.4 Concluding remarksPART III. COUNTRY PERSPECTIVES OF REGIONAL CO-OPERATION15. Tariff and Non-tariff Barriers in South Asia Trade: A Bangladesh Perspective by Zaidi Sattar15.1 Introduction15.2 Lack of integration hypotheses15.3 Potential non-tariff barriers for exports to Bangladesh15.4 SAFTA, regional trade and Bangladesh15.5 Making SAFTA effective in South Asia15.6 The way forward16. Tariff and Non-tariff Barriers to Trade in South Asia: An Indian Perspective by Nisha Taneja, Shravani Prakash and Samridhi Bimal16.1 Introduction16.2 Trends in trade16.3 Liberalisation of tariffs under SAFTA and India’s bilateral FTAs16.4 Non-tariff barriers16.5 Transport16.6 Transit16.7 Prioritising India’s agenda for future regional trade integration16.8 Concluding remarks17. Pakistan: South Asia Trade and Non-tariff Barriers by Usman Khan17.1 Introduction17.2 Integration efforts in South Asia17.3 Pakistan’s trade relations with South Asia17.4 Intra-industry trade in South Asia: Evidence and issues17.5 Conclusion18. Nepal and SAFTA: Issues, Prospects and Challenges by Ratnakar Adhikari and Paras Kharel18.1 Introduction18.2 Nepal’s trade performance18.3 Trade with India18.4 SAFTA membership and trade with India18.5 SAFTA: Trade with other South Asian countries18.6 Supply-side constraints18.7 Conclusion19. The Way Forward on Tariffs, Non-tariff Barriers, SAFTA, Bilateral Free Trade Agreements: The Case Study of Sri Lanka by Indra Nath Mukherji19.1 Introduction19.2 Import tariff19.3 Non-tariff measures/barriers19.4 Trade liberalisation under preferential/free trade agreements20. South Asian Trade: What it Means to Maldives by Ismail Nashid20.1 Introduction20.2 Overview of the Maldivian economy20.3 Trade policy framework20.4 Trade in merchandise20.5 Trade with South Asia: Application of SAFTA20.6 Barriers to effective application of free trade agreements20.7 Way forward: Greater trade facilitation through the elimination of non-tariff barriers20.8 ConclusionPART IV. CASE STUDIES ON BILATERAL CO-OPERATION21. Indo-Bangla Trade: Composition, Trends and the Way Forward by Md. Abul Basher21.1 Introduction21.2 Bangladesh’s trade policies and implications for Indo-Bangla trade21.3 Composition and trend of Indo-Bangla trade21.4 Explaining Indo-Bangla trade21.5 Non-tariff trade barriers between Bangladesh and India21.6 Conclusions and policy recommendations22. India–Pakistan Economic Co-operation: Implications for Regional Integration in South Asia by Selim Raihan and Prabir De22.1 Introduction22.2 Bilateral trade: Trends and bottlenecks22.3 Trade complementarity is there between India and Pakistan?22.4 Pakistan‘s granting most favoured nation status to India and its impact on bilateral and regional trade22.5 Role of foreign direct investment in narrowing Pakistan‘s trade gap with India22.6 Ways to facilitate bilateral trade and policy options: Some recommendations22.7 Concluding remarks23. India–Sri Lanka Free Trade Agreement and the Proposed Comprehensive Economic Partnership Agreement: A Closer Look by Saman Kelegama23.1 Introduction23.2 Experience of the ISLFTA: Recent trends23.3 The comprehensive economic partnership agreement: Way forward towards increased integration23.4 Concluding remarks24. The Promise and Potential of Trade Between Pakistan and India by Arif Zaman24.1 Background24.2 Drivers and rationale24.3 Trade potentials24.4 Barriers and constraints24.5 Opportunities and openings24.6 Recommendations and way forwardAbout the authorsIndex