---
title: "South Asian Free Trade Area Definition | Model Diplomat"
description: "The South Asian Free Trade Area is a trade pact aimed at eliminating tariffs among eight South Asian countries, crucial for regional economic cooperation."
url: "https://modeldiplomat.com/learn/glossary/south-asian-free-trade-area"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The South Asian Free Trade Area is a SAARC-administered trade pact, signed in 2004 and effective 2006, that progressively eliminates tariffs among eight South Asian member states.
- How does SAFTA differ from SAPTA?
- What are the tariff reduction timelines under SAFTA?
- Why has intra-regional trade under SAFTA remained low?
- What is the Rules of Origin requirement under SAFTA?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 6 January 2004

   It was signed at the Twelfth SAARC Summit in Islamabad on and entered into force on 1 January 2006, superseding the earlier SAARC Preferential Trading Arran…

2. 1 January 2006

   It was signed at the Twelfth SAARC Summit in Islamabad on 6 January 2004 and entered into force on , superseding the earlier SAARC Preferential Trading Arran…

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In 2019, following the Pulwama attack, India revoked Pakistan's Most Favoured Nation status and raised customs duty to 200 per cent on Pakistani goods, sharply curtailing the limited bilateral trade that SAFTA had permitted.

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