The objective of SAFTA is to promote and improve common treaties between countries, such as medium- and long-term contracts. Trade contracts with States, security of supply and import for certain products, etc. It is an agreement on tariff concessions such as domestic tariff concessions and non-tariff concessions The South Asian Free Trade Area (SAFTA) is an agreement reached on 6 January 2004 at the 12th SAARC Summit in Islamabad, Pakistan. It created a free trade area of 1.6 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, to reduce tariffs on all traded goods to zero by 2016. The SAFTA agreement entered into force on 1 January 2006 and is operational after the ratification of the agreement by the seven governments. SAFTA requested developing countries in South Asia (India, Pakistan and Sri Lanka) to reduce their tariffs to 20 per cent in the first phase of the biennium ended 2007. In the last five-year phase, which ended in 2012, tariffs were reduced from 20% to zero in a series of annual reductions. The least developed countries in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives) had three additional years to reduce tariffs to zero. India and Pakistan ratified the treaty in 2009, while Afghanistan, the 8th member state of SAARC, ratified the SAFTA protocol on 4 May 2011.  The agreement was signed in 2004 and entered into force on 1 January 2006, SAARC member states (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) wish to promote and maintain economic trade and cooperation within the saarc by exchanging concessions. The establishment of an Intergovernmental Group (IIG) to develop an agreement for the establishment of a SAPTA by 1997 was approved at the sixth SAARC Summit held in Colombo in December 1991. Distributors use SAFTA to divert palm oil through Bangladesh, Nepal to India. The Solvent Extractors` Association of India (SEA), a leading vegetable oil trade organization, has called on the government to look for ways to stop the indirect purchase of palm oil and soybean oil from Nepal and Bangladesh under the South Asia Free Trade Agreement (SAFTA).
Nepal imported 54,076 tons of palm oil from July to August and exported 35,706 tons to India during that period, the trade organization said, citing import data. The main objective of the agreement is to promote competition in this area and to offer fair advantages to the countries concerned. It aims to serve the peoples of countries by bringing transparency and integrity among nations. SAFTA was also established to increase the level of trade and economic cooperation among SAAC countries by reducing tariffs and barriers, as well as to give special preference to least developed countries (LDCs) among SAACs nations.to to create a framework for further regional cooperation. SEA has called on the government to fill a gap in the South Asian regional free trade pact, which has been used to circumvent tariffs through imports of palm oil and soybeans diverted by Nepal and Bangladesh. In accordance with the trade liberalization programme, the Contracting Parties must adhere to the following tariff reduction schedule. Non-developing countries should be reduced to 20 per cent of tariffs, which reduced no developing countries the least amount of existing customs and by 30 per cent by least developed countries. However, there is no trade liberalization system for the sensitive list, as this list must be negotiated between the contracting countries and then traded. The sensitive list will include a common agreement between the developing countries, which will favour the least developed countries of the Treaty. . . .