What are Positive and Negative Impact of SAARC Preferential Trdae Agreement?

The South Asian Association for Regional Cooperation (SAARC) Preferential Trade Agreement (SAPTA) aims to enhance trade among member countries by reducing tariffs on various goods. A positive impact of SAPTA includes the potential for increased intra-regional trade, which can stimulate economic growth and cooperation among South Asian nations. However, a negative impact may be the limited scope and effectiveness due to political tensions and economic disparities among member states, which can hinder deeper integration and benefit-sharing. Additionally, SAPTA's focus on preferential trade can lead to trade diversion, where members may prioritize intra-regional trade over potentially more beneficial global trade opportunities.