<h4>Introduction to SAFTA</h4><p>The <strong>South Asian Free Trade Area (SAFTA)</strong> is a free trade arrangement of the <strong>South Asian Association for Regional Cooperation (SAARC)</strong>. It was established to reduce customs duties of all traded goods to zero by 2016 for non-Least Developed Countries (LDCs) and by 2019 for LDCs.</p><div class="info-box"><strong>SAFTA Agreement:</strong> Signed in <strong>Islamabad</strong> on <strong>January 6, 2004</strong>.<br><strong>Came into effect:</strong> <strong>January 1, 2006</strong>.<br><strong>Member States:</strong> Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.</div><h4>Understanding Duty-Free Import Provisions</h4><p><strong>Duty-free import provisions</strong> under SAFTA mean that goods originating from member countries can be imported into other member countries without incurring customs duties. This aims to boost intra-regional trade and economic cooperation among <strong>SAARC nations</strong>.</p><div class="key-point-box">The core idea is to eliminate trade barriers, making goods cheaper and more accessible across the region. This fosters economic integration and mutual benefit.</div><h4>The Issue of Misuse of SAFTA's Provisions</h4><p>The provided information highlights a concern regarding the <strong>misuse of SAFTA's duty-free import provisions</strong>. This implies that certain entities or practices are exploiting the agreement's benefits in ways unintended by its framers.</p><p>Such misuse can undermine the integrity of the trade agreement, distort regional trade patterns, and lead to revenue losses for member states. It often involves circumventing rules of origin or other regulatory frameworks.</p><div class="exam-tip-box">When discussing SAFTA, UPSC often looks for a nuanced understanding, including its successes, failures, and challenges like misuse of provisions. Focus on how such issues impact regional cooperation and India's trade policy.</div>