The SAARC Preferential Trading Arrangement (SAPTA) reflected the desire of the Member States to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of tariff concessions.
The idea of liberalizing trade among SAARC countries was first mooted by Sri Lanka at the sixth Summit of the South Asian Association for Regional Co-operation (SAARC) held in Colombo in December 1991.
Four rounds of negotiations were held under SAPTA. SAPTA was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union. Accordingly SAPTA was superseded with the implementation of SAFTA. Product coverage was limited under SAPTA and usage of tariff preferences under the SAPTA has been gradually decreasing.
SAPTA - at a glance
| Date of signing of the agreement | Date of coming into effect | Members | Negotiation approach | Products coverage |
| 11th April 1993 | 07th December 1995 | Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka |
Positive List | Over 6,500 |
SAPTA Rules of Origin Criteria (RoO) under SAPTA applicable to Sri Lanka - at a glance
|
Wholly obtained products |
Not Wholly obtained products |
|
|
√ |
General Rule |
Cumulative Rule |
|
40% < DVA |
50% < RAC |
|
DVA = Domestic Value Addition
RAC = Regional Aggregate Content
Statistical Analysis
Sri Lanka’s country wise exports and imports under SAPTA
| Value in US$ Mn | ||||||||||
|
Country |
2017 |
2018 |
2019 |
2020 |
2021 |
|||||
|
Export |
Import |
Export |
Import |
Export |
Import |
Export |
Import |
Export |
Import |
|
|
India |
2.89 |
0.07 |
2.86 |
0.18 |
1.54 |
0.07 |
0.66 |
0.09 |
1.22 |
0.10 |
|
Bangladesh |
1.52 |
- |
0.55 |
0.024552 |
0.19 |
0.04 |
0.11 |
0.04 |
0.13 |
0.03 |
|
Pakistan |
0.04 |
0.11 |
0.03 |
0.03 |
0.00 |
- |
- |
- |
- |
- |
|
Maldives |
0.04 |
- |
0.06 |
- |
- |
- |
- |
- |
0.07 |
- |
|
Nepal |
- |
- |
0.012608 |
- |
0.01 |
- |
- |
- |
- |
- |
|
Total |
4.49 |
0.18 |
3.52 |
0.23 |
1.75 |
0.11 |
0.78 |
0.12 |
1.42 |
0.13 |
|
Source: Sri Lanka Custom |
||||||||||
Sri Lanka’s product wise exports under SAPTA
| Value in US$ Mn | ||||||||
|
HS |
Description |
2017 |
2018 |
2019 |
2020 |
2021 |
Change in 2021 over 2020 (%) |
Share in 2021 (%) |
|
400821 |
Other non- cellular rubber : Plates, sheets and strip |
2.10 |
1.68 |
1.19 |
0.36 |
0.81 |
127.92 |
57.19 |
|
401693 |
Other : Gasket,washers and other seals : Other |
0.30 |
0.35 |
0.21 |
0.20 |
0.40 |
99.53 |
28.09 |
|
350520 |
Glues |
0.12 |
0.10 |
0.17 |
0.11 |
0.13 |
23.12 |
9.44 |
|
090230 |
Black tea |
0.00 |
0.00 |
- |
- |
0.05 |
- |
3.60 |
|
Other |
1.96 |
1.39 |
0.18 |
0.11 |
0.02 |
(77.98) |
1.68 |
|
|
Total |
4.49 |
3.52 |
1.75 |
0.78 |
1.42 |
83.60 |
100.00 |
|
|
Source: Sri Lanka Custom |
||||||||
