The proposed South Asia Free Trade Agreement, which will come into effect according to the timetable set out at the South Asian Association for Regional Cooperation summit in Islamabad, will greatly benefit the region, diplomats from the member countries said in Washington.
Economic and political cooperation existed in the region in the past and the new measure was like "going back to their roots," they said, after inaugurating the SAIS-SAARC Ambassadors Forum, launched by the School of Advanced International Studies at the John Hopkins University.
"Regionalism in South Asia is not in the interest of international cooperation as envisaged by the World Trade Organisation," Indian Charge d'Affaires Rakesh Sood said, adding despite political divisions there was economic unity in the region, including Burma, even a hundred years back.
"So, in a sense, they are only going back to their roots," he said and pointed out that at the Islamabad summit the leaders have chalked out plans for a free trade area, giving each country the time it needs to adjust.
Sri Lankan Ambassador Devinda R Subasinghe said 70 per cent of the island nation's gross domestic product was derived from export and import trade, particularly with India.
Nepal's Charge D'Affaires Rudra Nepal and Deputy Permanent Representative of Bhutan highlighted the enormous hydroelectric potential of the two kingdoms, while deputy chief of mission of Bangladesh spoke of the potential for gas exports for his country.
Ashraf Hayat, minister of trade in the Embassy of Pakistan, said the region could immensely benefit from gas pipeline and other projects through Pakistan.