Wednesday, January 4 2006 11:27 Hrs (IST) - World Time -

New York: The UN envoy for the world's vulnerable nations, Anwarul K Chowdhury, has hailed the South Asian Free Trade Area (SAFTA) agreement as a boon for the region's four Least Developed Countries (LDCs)- Bhutan, Bangladesh, Maldives and Nepal.

"SAFTA's recognition of the special needs of LDCs as deserving preferential treatment is an outstanding example of the role regional trade arrangements can play in assisting weaker countries to overcome their vulnerabilities and reap the full benefits of economic integration," said Chowdhury, the UN High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

The agreement would boost the exports of the four LDCs, reinforcing their poverty reduction efforts and propelling them to sustainable development, he added.

SAFTA, which became operational on 1 January 2006, is an agreement between members of the South Asian Association for Regional Cooperation (SAARC), which also includes India, Pakistan and Sri Lanka.

The agreement requires member countries to reduce their tariffs on products from the four LDCs to between zero and five per cent within three years, compared to a timeframe of seven years for the other members. "The implementation of this package of measures will not only boost the exports of the four LDCs, both within and outside SAFTA, but will also create employment and improve incomes, which will ultimately have a positive impact on poverty reduction", said Chowdhury.