South Asian Preferential Trade Agreement
(e) the merger of undertakings in other States Parties with project promoters in the least developed Contracting States (public and private) with a view to promoting joint ventures in the context of projects aimed at increasing trade; (5) In critical circumstances, there is an exceptional situation in which massive preferential imports cause or are likely to cause serious injury that is difficult to remedy and where immediate measures are necessary. having regard to the mandate given at the sixth ASARC Summit in Colombo to define an institutional framework and seek agreement on the possibility of developing specific trade liberalisation measures between SAAC Member States, and to examine Sri Lanka`s proposal to establish the SAARC Preferential Agreement (SAPTA) by 1997; 7 The late partial cumulation of Rule 4 means that only goods which have acquired originating status in the territory of one State Party may be taken into consideration if they are used as inputs for a finished product eligible for preferential treatment in the territory of another State Party. 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. 3. In the absence of agreement between the States Parties concerned within six months of receipt of the notification and if the notifying State Party amends or withdraws such concessions, the States Parties concerned may, in accordance with the Committee, withdraw or modify equivalent concessions in their respective timetables.
Any such modification or withdrawal shall be notified to the Committee. Products listed in the National Concessions Regulations annexed to this Agreement may receive preferential treatment if they comply with the rules of origin, including the specific rules of origin, for the least developed States Parties listed in Annex III. 87 At the Ministerial Conference held in Hong Kong, Pakistan and Sri Lanka appear to have opposed access for Bangladeshi clothing to industrialised countries in general and to the United States in particular, duty-free and quota-free. The attitude of these two countries was in the spirit of the Dhaka Declaration adopted at the 13th SAARC Summit held in Dhaka in November 2005. Governments agreed that ASARC member states would “work closely together to coordinate their position” in the ongoing trade negotiations and ordered trade ministers to hold consultations on the margins of the WTO Ministerial Conference to develop a common position on issues of common interest. See A. Rahman, “Hong Kong ministerial” The Independent Bangladesh, online: The Independent Bangladesh . See also SAARC, Dhaka Declaration of the 13th SAARC Summit, (13. November 2005), online: .
Concessions agreed under this Convention may not be reduced or abolished by the application of restrictive measures by the Contracting States, unless this results from the provisions of other Articles of this Convention. . . .