Thanks for your trust in my limited knowledge of the topic.

I am not familiar with SAFTA on an operative basis. My limited experience comes from Latin America (and some on Africa) and I am afraid it does not lead to be over-optimistic.

The main issue is that trade is done by firms, not by governments nor by countries. This is one of the largest issue with top-down regional integration.

The second issue is that, even amongst the governments that signed the regional agreement, everybody agrees to cooperate as long as no serious investment (and related jobs plus taxes) leave the country and go to the neighbours. But RTAs cannot always be a systematic win-win game, at leat at micro-level and firms should be able to arbitrage in order to remain internationally competitive.

The solution?

My best bet is to build on public-private partnership, finding large regional Lead-Firms (recognised brand-owners, large retailers, supply chain managers) who will drive the process and not only benefit from the RTA, but also monitor its implementation and lobby for its deepening.

In parallel, implement frequent informal meetings among high level technicians in trade and industry ministries. This helps building inter-personal trust and defuse neighbourhood crisis.

My two cents.

Sincerely,

Hubert

Thank you Prof. Escaith for your view. It is absolutely true that any RTA , be it SAFTA or NAFTA, can not be a completely win-win game. In fact the win is assigned for the leading or the primary negotiating country of any RTA. However, in case of Textile Trade for the SAARC countries I have found substantial evidence of increasing trade of intermediate goods among the SAFTA countries via-a- vis the trade in final goods. So we are optimistic about the increasing contribution of these countries in the formation of the regional value chain, if they specialise according to their comparative advantages in different stages of manufacture, which may eventually lead to increased South-South trade in textile items, in addition to North-South trade, where the former was predominantly outnumbered by the dominant later. Thank you again.

Good to see that your working on SAFTA countries. I noticed that there are very limited working on South Asian countries. If possible then can you please share your paper link here.

Thank you

• ECONOMIC INTEGRATION AND TRADE PROTECTION: POLICY ISSUES FOR SOUTH ASIAN COUNTRIES
• Mausumi Kar Version of Record online: 16 JUN 2017 | DOI: 10.1111/coep.12239
• Contemporary Economic Policy. Wiley

really very interesting , Textile industry has emerging participation in it.

South Asian countries should go extensively for it , problem is only data . But primary surveys can help out.