The South Asian Association for Regional Cooperation (SAARC) Wednesday announced the formal enforcement of the South Asian Free Trade Area (SAFTA) agreement with effect from Jan. 1, 2006, state run Radio Nepal reported Thursday.

The agreement on SAFTA was signed in Islamabad during the 12th SAARC summit in January 2004, and all the member states have since completed all formalities including ratification, the radio quoted a press statement released by SAARC Secretariat as saying.

The entry into force of the agreement thus launched the SAFTA, which would be completed by Jan. 1, 2016, the statement noted.

Nepal, Bangladesh, Bhutan and the Maldives will have to maintain the customs duty from 0-5 percent within the next 10 years while India, Pakistan and Sri Lanka will have to do the same within seven years.

The first round of customs duty reduction will take place as agreed by the member states in July/August 2006.

Source: Xinhua