The article discusses the economic reasons behind the South Asia Free Trade Area (SAFTA) Agreement. It looks at the trading arrangements in South Asia and evaluates the effectiveness of existing free trade areas in the region. The authors find that the economic case for SAFTA is weak on its own due to the region's small economic size and high levels of protection. They suggest that SAFTA only makes sense as part of a larger trade area including China and Southeast Asian nations. This broader strategy could help counter discrimination against Asian exports in other regions and promote multilateral trade agreements. To make SAFTA more effective, the authors recommend steps to boost intra-regional trade while minimizing trade-diversion costs.