The South Asian Free Trade Agreement, also known as SAFTA, is a trade agreement among the eight South Asian countries. The agreement was signed in 2004 and came into effect in 2006. The SAFTA aims to promote free trade and economic integration among the South Asian countries.

The eight members of SAFTA are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The agreement provides for the reduction and elimination of customs duties and other trade barriers among the member countries.

The primary objective of SAFTA is to increase intra-regional trade among the member countries. The agreement aims to create a free and open market for goods and services, promote regional economic integration, and encourage economic cooperation among the member countries.

Under SAFTA, the member countries have agreed to reduce and eventually eliminate tariff and non-tariff barriers on goods traded among the member countries. The agreement also provides for the protection of intellectual property rights and the liberalization of trade in services.

The SAFTA has the potential to significantly boost economic growth and development in the South Asian region. However, the agreement faces several challenges, including political instability, security concerns, and lack of infrastructure.

In order to fully realize the benefits of SAFTA, member countries must work together to address these challenges and implement the necessary reforms. This includes investing in infrastructure development, improving trade facilitation measures, and promoting regional cooperation and integration.

Overall, the South Asian Free Trade Agreement is an important initiative that has the potential to significantly enhance economic cooperation and integration in the South Asian region. By working together and implementing the necessary reforms, the member countries can unlock the full potential of SAFTA and drive sustainable economic growth and development in the region.