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Leaders adopt Islamabad Declaration

By Amit Baruah and B. Muralidhar Reddy

ISLAMABAD JAN. 6. In a major concession to Pakistani sensibilities, the Islamabad Declaration adopted by the SAARC Heads of State/Government today said the creation of a "suitable political and economic environment" would help the birth of the proposed South Asian Economic Union.

Other than the declaration, the 12th SAARC summit also adopted the South Asian Free Trade Area (SAFTA) Agreement as well as an additional protocol to the existing convention on the suppression of terrorism.

As per the Agreement, SAFTA will come into force from January 1, 2006, and the "developing countries" in SAARC will reduce their tariffs to between zero and five per cent for Least Developed Countries (LDCs) beginning from January 1, 2006.

The declaration said the SAARC nations condemned terrorism in all its forms and manifestations and noted that the people of South Asia continued to face a "serious threat" from this scourge.

"We are convinced that terrorism, in all its forms and manifestations, is a challenge to all states and to all of humanity, and cannot be justified on any ground, whatsoever.

"Terrorism violates the fundamental values of the United Nations and the SAARC Charter and constitutes one of the most serious threats to international peace and security. We agree to fully implement the relevant international conventions to which we are parties," the declaration said.

It reaffirmed the commitment of SAARC to the Regional Convention on Suppression of Terrorism, which, among others, recognised the seriousness of the problem as it affected the security, stability and development of the region.

"The signing of the Additional Protocol... to the Regional Convention... to deal effectively with financing of terrorism is a further manifestation of our determination to eliminate all forms and manifestations of terrorism from South Asia," the document said.

Interestingly, concerns on national security have been extended to the SAFTA Agreement, which allows member States to take action and adopt measures in the interests of national security.

The SAFTA accord also allows any contracting state to pull out of the treaty at any time after it comes into force on January 1, 2006. "Such withdrawal shall be effective on the expiry of six months from the date on which a written notice thereof is received by the Secretary-General of SAARC..."

A SAFTA Ministerial Council comprising Commerce/Trade Ministers and a Committee of Experts have been envisaged in SAFTA for the administration and implementation of the agreement.

The accord envisages that states shall "give special regard" to the situation of LDCs when considering the application of anti-dumping and/or countervailing measures and allows consultations with LDCs in this regard.

The SAFTA Agreement also "suggests" a number of measures that members may adopt, including the removal of barriers to intra-SAARC investment, harmonisation of customs facilities, transit facilities for efficient intra-SAARC trade and simplification of procedures for business visas.

"Any dispute that may arise among the contracting States regarding the interpretation and application of the provisions of this [SAFTA] Agreement or any instrument adopted within its framework concerning the rights and obligations of the... States will be amicably settled through a process initiated by a request for bilateral consultations," the document said.

Describing SAFTA as a major milestone, the Declaration said: "It is important to maintain this momentum and move towards further broadening of economic cooperation and to ensure equitable distribution of benefits of trade..."

On enhancing political cooperation among SAARC nations, it said: "We envision South Asia to be a peaceful and stable region where each nation is at peace with itself and its neighbours and where conflicts, differences and disputes are addressed through peaceful means and dialogue."

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