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Aiming to transform the region into a vibrant economic zone, SAARC resolved to set up a South Asian Economic Union on the lines of European Union by facilitating a common market and removing trade barriers.
At the two-day SAARC summit, leaders of the regional grouping held elaborate discussion on exploiting untapped potential of trade and decided to work with a renewed vigour to remove the bottlenecks to make the region a thriving hub of trade and commerce.
"The leaders renewed their commitment to achieve South Asian Economic Union (SAEU) in a phased and planned manner through a Free Trade Area, a Customs Union, a Common Market, and a Common Economic and Monetary Union," a declaration issued at the end of the summit said.
To facilitate increased trade, the leaders also favoured streamlining and simplification of customs procedures, elimination of non-tariff and para-tariff barriers and setting up of a smooth and efficient transit and transport facilities.
They also called for early operationalisation of SATIS (SAARC Agreement on Trade in Services) which is expected to spur growth in a significant way.
The leaders directed for collaboration and engagement among public authorities and private stakeholders in the member states to lower telephone tariff rates and called for rationalisation of the tariff structures.
On Wednesday, Prime Minister Narendra Modi had said that the SAARC region has "boundless potential" and called for removing hurdles for growth and development in the region.
The declaration said the leaders also directed SAFTA (South Asian Free Trade Area) Ministerial Council and SAFTA Committee of Experts to accelerate free trade in goods and services in the region by putting into operation simplified and transparent rules, trade facilitation and removing technical barriers to trade.
To facilitate increased trade, they favoured streamlining and simplification of customs procedures, elimination of non-tariff and para-tariff barriers and smooth and efficient transit and transport facilities.
The leaders also agreed to strengthen the Social Window of the SAARC Development Fund (SDF) and operationalise its Economic Window and Infrastructure Window at the earliest for effective implementation of regional and sub-regional projects.
They reiterated their strong commitment to ensure good governance for sustainable development by promoting accountability, transparency, the rule of law and people's participation at all levels of governance.
They committed to enhance support to the Least Developed and LandlockedMemberStates in their development efforts, with a view to ensuring equitable benefits of free trade arrangements. In this context, they agreed to effectively implement the existing preferential facilities under SAFTA and SATIS.
The declaration said it was agreed to strengthen the Social Window of the SAARC Development Fund (SDF) and operationalise its Economic Window and Infrastructure Window at the earliest for effective implementation of regional and sub-regional projects.