To: kumar who wrote (45427 ) 1/3/2004 12:39:03 AM From: IQBAL LATIF Read Replies (2) | Respond to of 50167 SAARC states agree on free trade zone * Kasuri to announce details of agreement today * India proposes single currency, economic union for SAARC * FO spokesman says focus on conflict-resolution in immediate future <<We are moving forward like anyone else.. the region has greatest of intellect and ability to be creative..>> By Shaukat Piracha and Shahzad Raza ISLAMABAD: Foreign secretaries from South Asian Association for Regional Cooperation (SAARC) on Friday agreed to create a regional free trade area. The Standing Committee of the SAARC foreign secretaries approved the South Asian Free Trade Area (SAFTA) framework agreement and recommended that the foreign ministers sign the agreement during the summit. The committee had not been able to agree on a draft till Thursday evening as its chairman, Foreign Secretary Riaz Khokhar, had said that the least developed countries in SAARC, particularly Bangladesh, had some problems with SAFTA. Mr Khokhar did not give the deal’s details and said Foreign Minister Khurshid Kasuri would elaborate today (Saturday) at a press conference. However, addressing a special briefing on the first day’s proceedings of the SAARC Council of Ministers here, Foreign Office Spokesman Masood Khan said Mr Khokhar presented a report in which an agreement was reached to have a SAARC social charter signed at the summit, the text of additional protocol to the SAARC Convention on Suppression of Terrorism finalised and the SAFTA agreement draft cleared. “The committee recommended that the SAARC foreign ministers sign these agreements during the summit,” Mr Khan added. The spokesman said in Friday’s session that the Indian side proposed a single currency and economic union for the SAARC region. “This is a good idea and must be pursued. But in the immediate future, we must focus on conflict-resolution for moving towards economic union,” he said. Mr Khan, however, said a step-by-step approach was needed as it (an economic union) was a premature idea. He said India had made no request so far for a bilateral meeting between Pakistani leaders and the Indian prime minister. “There should be engagement between the leaders at the highest level. They should go into substance and resolve issues,” he added. The Council of Ministers also reviewed the progress on the SAARC food security reserves. It also approved recommendations by the Independent South Asian Commission on Poverty Alleviation (ISACPA). It was also decided that the SAARC finance ministers would monitor poverty alleviation. The FO spokesman said the SAARC foreign ministers held two meetings on Friday. He said the signing of an additional protocol against terror financing would augur well for regional cooperation and added that the definition of terrorism was not discussed. To Indian Foreign Minister Yashwant Sinha’s suggestion of making the ceasefire at the Line of Control permanent, Mr Khan said Pakistan had made the unilateral offer with the expectation that the truce would be permanent. “The ceasefire is holding. It is good”, he added. He said there should a comprehensive engagement between the two countries leading to resolution of disputes in the region. Meanwhile, Indian External Affairs Minister Yashwant Sinha also confirmed that SAARC countries had agreed to resolve their differences that were hindering a free trade zone in South Asia. “If only we would permit regional stability and cooperation to empower the poor of our countries, the extraordinary productive energies of the one and a half billion people of this region will be set free for the grand march of our economic and social development,” he said while speaking at a symposium on regional cooperation of the SAARC Chamber of Commerce and Industry. Commenting on relations between Pakistan and India, he said there were no “readymade solutions” to what has kept the two countries from coming together. “If Pakistan can find within itself the strength and wisdom to change its current approach towards India, there are immense benefits that it can derive as a transit route for the movement of energy, goods and people,” Sinha said. He said only closer economic integration could help end decades of mistrust. “They can help resolve our differences in a way that old hostility or new distrust never can.”