PYQ Vault · Paper 2 · South Asia: Regionalism, SAARC & BIMSTEC

What are the impediments in the development of South Asian Free Trade Area (SAFTA)?

How the answer moves

The flow snapshot — the routes in, the body, the counter-view and the routes out.

Flow snapshot — how the answer moves
Intro routes

Route 1 in force since 2006 → intra-regional trade still ~5% against ASEAN’s 25% → tariffs were never the real barrier

Route 2 the region cut the one barrier it could agree on → kept every barrier that mattered → an instrument narrower than the problem

Body flow

NTBs untouched, focus on tariffs alone → trade costs 114% of export value, Brazil cheaper than neighbours → similar agricultural baskets, competitors not partners → India–EU 2026 sharpens the contest for outside markets → political discretion overrides the text: May 2025 prohibition on Pakistani goods, SAARC visa exemption withdrawn, India–Bangladesh port restrictions → Wignaraja: secretariats coordinate and monitor, no delegated authority

Counter-view

informal trade across porous frontiers (UNESCAP) → official data understate actual exchange → the constraint is the agreement’s remit, not the region’s appetite

Conclusion routes

Route 1 SAFTA failed on what it was never allowed to govern

Route 2 tariff cuts cannot move the 5% until NTBs, transit and enforcement enter its remit

Model answer

Handwritten, in the form it would be written in the examination hall.

Handwritten model answer — UPSC PSIR 2017, South Asia: Regionalism, SAARC & BIMSTEC