The agreement was signed in 2004 and entered into force on 1 January 2006 with the wish of saarc member states (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) to promote and maintain mutual trade and economic cooperation within saarc by exchanging concessions. The main objective of the agreement is to promote competition in this area and to offer fair advantages to the countries concerned. It aims to serve the peoples of countries by bringing transparency and integrity among nations. SAFTA was also established to increase the level of trade and economic cooperation among SAAC countries by reducing tariffs and barriers, as well as to give special preference to least developed countries (LDCs) among SAACs nations.to to create a framework for further regional cooperation. Notwithstanding the measures provided for in this Agreement, its provisions shall not apply to preferences which a State Party has already granted or will grant to other States Parties outside the framework of this Agreement, as well as to third countries under bilateral, plurilateral and multilateral trade agreements and similar agreements. The Government of India and the Republic of Korea have signed the Comprehensive Economic Partnership Agreement (CEPA) to liberalize and facilitate trade in goods and services and increase investment between countries. The Export Inspection Board shall be the only body to issue certificates of origin under this Agreement. Considering that it is necessary to go beyond a preferential trade agreement to move to a higher level of trade and economic cooperation in the region by removing obstacles to the movement of cross-border goods, this comprehensive economic cooperation agreement exists between the Government of India and Malaysia. The Export Inspection Board shall be the only body to issue certificates of origin issued under this Agreement with effect from 1 July 2011. In accordance with the trade liberalization programme, the Contracting Parties must adhere to the following tariff reduction schedule. Non-developing countries should be reduced to 20 per cent of tariffs, which reduced no developing countries the least amount of existing customs and by 30 per cent by least developed countries. However, there is no trade liberalization system for the sensitive list, as this list must be negotiated between the contracting countries and then traded. The sensitive list will include a common agreement between the developing countries, which will favour the developing countries.
The SAFTA Council of Ministers (SMC) will participate every four years to review the sensitive list in order to reduce the list. Concessions agreed under this Convention may not be reduced or abolished by the application of restrictive measures by the Contracting States, except as provided in this Agreement. The certificate of origin is an instrument that establishes proof of origin for goods imported into any country. These certificates are indispensable for exporters to prove where their products come from and, therefore, to assert their right to all the benefits for which products of Indian origin are eligible in the exporting country. . . .