Mapping Composition of Trade in South Asian Countries

The objective of the paper is to examine the regional and international trade structures through customary trade practices such as commodity composition and direction of trade, and bilateral trade shares of the South Asian countries and the obstacles of Preferential Trade Liberalization. South Asia accounts for higher level of trade barriers although shares an insignificant portion of world trade. However the South Asian Preferential trade agreements held on 2-4 May 1995 at the 8 th SAARC summit in Delhi promoted economic cooperation among the members of states in spite of some political splat. However the economic factors are more responsible for sharpening the position of trade than the political issues. This makes the point very clear that much of trade diversion than trade creation can be promoted by Preferential Trade Liberalization making the rich countries richer and poor countries poorer.