Islamabad: South Asian Free Trade Agreement (SAFTA), the draft of which was agreed to by the SAARC (South Asian Association for Regional Co-operation) Foreign Ministers, will come into force from January 2006 after ratification by all member-States.

SAFTA is to bring down the tariff level to zero and five per cent in a period of 10 years.

Hailing the agreement as a landmark decision, Pakistan Foreign Minister Kurshid Mehmood Kasuri told a press conference today (Jan 3, 2004) that each member-State will be allowed to maintain a sensitive list of products on which tariff would not be reduced.

This list will be finalised between now and the date on which SAFTA is expected to come into force - January 1, 2006.

Non-least developed member-States will reduce their tariffs to zero to five per cent in a period of seven years from 2006 and LDC member-States will bring it to the same level in a period of 10 years.

Kasuri said SAFTA framework will be put up before the SAARC Summit for approval.