Regional Integration in South Asia: Trends, Challenges and Prospects

Regional Integration in South Asia: Trends, Challenges and Prospects presents an objective assessment of trade and economic co-operation among South Asian nations and highlights policy issues to foster regional integration. The analyses presented in this volume go beyond the usual discussions on trade-in-goods to provide insightful perspectives on potential new areas of co-operation, emerging challenges, and country-specific views on regional and bilateral trade co-operation issues. Written by influential analysts and researchers, the volume’s 24 chapters include perspectives from Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka, and examinations of new areas of co-operation such as investment, regional supply chains, energy and cross-border transport networks.

Table of Contents:
Foreword List of tables, figures and boxes Abbreviations and acronyms 1. Regional Integration in South Asia: An Overview by Mohammad A Razzaque and Yurendra Basnett 1.1 Background 1.2 About this volume 1.3 Taking forward South Asian integration: An agenda for immediate action PART I. LOOKING AT THE HORIZON: POTENTIAL GAINS 2. Has South Asia Benefitted from Growth in India? by Rashmi Banga 2.1 Introduction 2.2 Brief review of existing literature 2.3 Trends in growth rates in India and the rest of South Asia 2.4 Are the growth rates linked? 2.5 India’s growth linkages with countries in South Asia 2.6 Conclusions and policy implications 3. Assessing Gains from SAFTA by Selim Raihan and Mohammad A Razzaque 3.1 Introduction 3.2 The pattern of South Asian intra-regional trade 3.3 Potential implications of SAFTA: Review of qualitative and quantitative studies 3.4 The welfare impact of SAFTA considering improved trade facilitation measures in South Asia 3.5 Conclusion 4. The Cost of Economic Non-Co-operation in South Asia by Bipul Chatterjee and Joseph George 4.1 Introduction 4.2 Potential impacts of SAFTA on consumer welfare: A quantitative assessment 4.3 Perceptions and expectations about regional economic co-operation in South Asia 4.4 Conclusions 5. Building Regional Supply Chains in South Asia: The Case of the Textiles and Clothing Sector by Rashmi Banga and Mohammad A Razzaque 5.1 Introduction 5.2 A brief review of the literature 5.3 Methodology for identifying potential supply chains 5.4 Implications on potential supply chains 5.5 Policy implications PART II. KEY AREAS FOR CO-OPERATION 6. Non-tariff Barriers in South Asia: Nature and Modalities to Address the Attendant Issues by Mustafizur Rahman and Mohammad A Razzaque 6.1 Introduction 6.2 Non-tariff barriers: Concept and typology 6.3 Non-tariff barriers in South Asia 6.4 Cross-country experience in resolving non-tariff barriers 6.5 Dispute settlement mechanisms in SAFTA and its efficacy: SAFTA committee of experts 6.6 Policy initiative to address the NTBs 6.7 Concluding remarks 7. Dealing with Non-tariff Barriers in South Asia by Jodie Keane, Jane Kennan, Sheila Page and Christopher Stevens 7.1 Introduction 7.2 Significant barriers to trade 7.2.1 Choosing priorities 7.3 Models of non-trade barrier monitoring and trade surveillance 7.4 Conforming to regulations and standards 7.5 Upgrading producers in meeting standards: Lessons from regional economic communities 7.6 Linking non-trade barrier monitoring and surveillance mechanisms to dispute resolution mechanisms: lessons from regional economic communities 7.7 Conclusions 8. Regional Investment Co-operation in South Asia by Khondaker G Moazzem 8.1 Background 8.2 Foreign direct investment in South Asia: A brief overview 8.3 An overview on Foreign Direct Investment-related policies of South Asian countries 8.4 Institutional approach for enhancing regional investment: An analysis of SAARC initiatives 8.5 Experience of ASEAN towards enhancing regional investment: Learning for SAARC 8.6 Suggestions for accelerating SAARC’s institutional initiatives for enhancing intra-regional investment in South Asia 8.7 Conclusion 9. Regional Trade in Services in South Asia by Selim Raihan 9.1 Introduction 9.2 Overview of the services sector in South Asia 9.3 Experiences of South Asian countries in General Agreement on Trade in Services negotiations 9.4 Services trade liberalisation negotiations in South Asia 9.5 Domestic preparedness of services trade liberalisation in South Asia 9.6 Concluding remarks 10. Connectivity and Regional Co-operation in South Asia by Prabir De 10.1 Introduction 10.2 An overview of regional connectivity in South Asia 10.3 Challenges to regional connectivity 10.4 Vision of an integrated South Asia: The regional co-operation agenda 10.5 Conclusions 11. Productive Integration of Least Developed Countries into Regional Supply Chains: The Case of South Asia by John Serieux 11.1 Introduction 11.2 Major constraints to least developed countries’ participation in regional supply chains 11.3 Policies and programmes to improve the conditions for the operation of supply chains 11.4 South Asian least developed countries in context 11.5 Conclusion 12. International Trade, Regional Integration and Food Security in South Asia by Ramesh Chand 12.1 Introduction 12.2 South Asia in a global setting 12.3 Hunger and nutrition 12.4 Production, consumption and surplus at regional level 12.5 Country-wise production, domestic use and surplus/deficit 12.6 International trade at regional and country level 12.7 Price and market integration 12.8 Trade liberalisation: Potential and constraints 12.9 The way forward 13. Promoting Regional Energy Co-operation in South Asia by Leena Srivastava, Neha Misra and Shahid Hasan 13.1 Introduction 13.2 Challenges faced by the subregion 13.3 Regional co-operation: Historical context and ongoing efforts 13.4 Encouraging the potential for subregional energy co-operation: A suggested approach 13.5 Conclusions 14. Commodities Super-cycle: Implications for South Asia by Machiko Nissanke and Sophie van Huellen 14.1 Introduction 14.2 South Asia’s role in commodity trade 14.3 Implications of the super-cycle for South Asia 14.4 Concluding remarks PART III. COUNTRY PERSPECTIVES OF REGIONAL CO-OPERATION 15. Tariff and Non-tariff Barriers in South Asia Trade: A Bangladesh Perspective by Zaidi Sattar 15.1 Introduction 15.2 Lack of integration hypotheses 15.3 Potential non-tariff barriers for exports to Bangladesh 15.4 SAFTA, regional trade and Bangladesh 15.5 Making SAFTA effective in South Asia 15.6 The way forward 16. Tariff and Non-tariff Barriers to Trade in South Asia: An Indian Perspective by Nisha Taneja, Shravani Prakash and Samridhi Bimal 16.1 Introduction 16.2 Trends in trade 16.3 Liberalisation of tariffs under SAFTA and India’s bilateral FTAs 16.4 Non-tariff barriers 16.5 Transport 16.6 Transit 16.7 Prioritising India’s agenda for future regional trade integration 16.8 Concluding remarks 17. Pakistan: South Asia Trade and Non-tariff Barriers by Usman Khan 17.1 Introduction 17.2 Integration efforts in South Asia 17.3 Pakistan’s trade relations with South Asia 17.4 Intra-industry trade in South Asia: Evidence and issues 17.5 Conclusion 18. Nepal and SAFTA: Issues, Prospects and Challenges by Ratnakar Adhikari and Paras Kharel 18.1 Introduction 18.2 Nepal’s trade performance 18.3 Trade with India 18.4 SAFTA membership and trade with India 18.5 SAFTA: Trade with other South Asian countries 18.6 Supply-side constraints 18.7 Conclusion 19. The Way Forward on Tariffs, Non-tariff Barriers, SAFTA, Bilateral Free Trade Agreements: The Case Study of Sri Lanka by Indra Nath Mukherji 19.1 Introduction 19.2 Import tariff 19.3 Non-tariff measures/barriers 19.4 Trade liberalisation under preferential/free trade agreements 20. South Asian Trade: What it Means to Maldives by Ismail Nashid 20.1 Introduction 20.2 Overview of the Maldivian economy 20.3 Trade policy framework 20.4 Trade in merchandise 20.5 Trade with South Asia: Application of SAFTA 20.6 Barriers to effective application of free trade agreements 20.7 Way forward: Greater trade facilitation through the elimination of non-tariff barriers 20.8 Conclusion PART IV. CASE STUDIES ON BILATERAL CO-OPERATION 21. Indo-Bangla Trade: Composition, Trends and the Way Forward by Md. Abul Basher 21.1 Introduction 21.2 Bangladesh’s trade policies and implications for Indo-Bangla trade 21.3 Composition and trend of Indo-Bangla trade 21.4 Explaining Indo-Bangla trade 21.5 Non-tariff trade barriers between Bangladesh and India 21.6 Conclusions and policy recommendations 22. India–Pakistan Economic Co-operation: Implications for Regional Integration in South Asia by Selim Raihan and Prabir De 22.1 Introduction 22.2 Bilateral trade: Trends and bottlenecks 22.3 Trade complementarity is there between India and Pakistan? 22.4 Pakistan‘s granting most favoured nation status to India and its impact on bilateral and regional trade 22.5 Role of foreign direct investment in narrowing Pakistan‘s trade gap with India 22.6 Ways to facilitate bilateral trade and policy options: Some recommendations 22.7 Concluding remarks 23. India–Sri Lanka Free Trade Agreement and the Proposed Comprehensive Economic Partnership Agreement: A Closer Look by Saman Kelegama 23.1 Introduction 23.2 Experience of the ISLFTA: Recent trends 23.3 The comprehensive economic partnership agreement: Way forward towards increased integration 23.4 Concluding remarks 24. The Promise and Potential of Trade Between Pakistan and India by Arif Zaman 24.1 Background 24.2 Drivers and rationale 24.3 Trade potentials 24.4 Barriers and constraints 24.5 Opportunities and openings 24.6 Recommendations and way forward About the authors Index

About the Author :
Mohammad A Razzaque is Adviser and Head, International Trade Policy Section at the Commonwealth Secretariat. His primary area of work includes applied trade policy analysis. He has written extensively on trade and development issues, edited several volumes, and managed a number of multi-country trade policy projects. Yurendra Basnett is a Research Fellow in the International Economic Development Group of the Overseas Development Institute (ODI), London. He leads ODI’s research and technical advisory work on trade and economic development policies.