South Asia's Trade Integration Could Boost Regional Prosperity, Reduce Poverty
The article investigates trade integration among South Asian countries. Initially, they formed a preferential trade agreement which later transformed into a free trade area. By analyzing the concept of "natural trading partners," the study found that South Asian countries trade moderately based on factors like trade volume, proximity, and complementarity. Obstacles to regional trade in the past limited their partnership potential. Despite this, prior trade liberalization efforts led to increased intra and extra-regional trade. The current trade structures in South Asia may not strongly boost regional trade, but ongoing trade liberalization alongside regional integration could help diversify exports and improve trade relations for the successful implementation of the free trade area agreement.