Date:01/01/2004 URL: http://www.thehindubusinessline.com/2004/01/01/stories/2004010101570400.htm

Back FICCI hopeful of free trade pact at SAARC summit

Our Bureau

New Delhi , Dec. 31

THE Federation of Indian Chambers of Commerce and Industry (FICCI) today expressed `confidence' that the SAARC nations would be able overcome all bottlenecks on the way to signing of SAARC Free Trade Agreement (SAFTA) at the forthcoming summit to be held at Islamabad.

Addressing presspersons here today, Mr Y.K. Modi, FICCI President-Elect, said, "As of today, we are very hopeful as support for SAFTA had been across the board." Agreeing that earlier it was believed that Pakistan was the roadblock, Mr Modi said, "but in the last one year Pakistan has turned out to be a strong supporter".

He, however, admitted that there had been some opposition to SAFTA from Bangladesh. "The businessmen of Bangladesh are almost convinced about the benefits."

For SAFTA to become a reality, the Chamber has suggested a four-point agenda, which included free movement of people and goods and services. It has also called for development of physical infrastructure - linkages through road, railways, shipping and appropriate air links — as it is most crucial for increasing intra regional trade to substantial levels. "In fact, the current level of trade can be almost doubled, provided appropriate regional agreements on roads, rail, shipping and air are put in place which enable seamless movement like that happens in the European Union and other trading blocks," Mr Modi said.