China-SAARC FTA

There is no fixed rule to be culturally, economically and politically similar to form a Regional Economic Cooperation.After second world war the allied countries started pushing their products wherever they could. The other countries then reciprocated by applying import tariff and quotas. Then the developed/powerful countries went forward applying pressures to the developing ones, sometimes military threats and sometimes the reform agendas of the world bank and the IMF. To fight these the countries with similar problems came together forming economic blocks to increase their bargaining power. As the countries who were geographically near could easily form such blocks so then came the formation of ASEAN, SAARC, ECO, SAU, AU etc. This is nothing to do with culturally similar or different but then while at bargain the block used the term culturally similar. The functioning just needs understanding and motive.

As far as Afganistan is concerned, it is one of the best dicision that SAARC has taken till date to include this country. And I welcome China and Japan also in the group. The observer status given to them is extremely good, but the way they are given is not satisfactory. NEpal putting a condition of the observer status to China for membership to Afganistan, and India not willing to bring in china was not good. Anyway there are some differences and the only thing that matters is the outcome. Welcome Afganistan, China nd Japan.

I think we are more concerned to textiles then is necessary. Nepal had free trade with india 2001. After that Nepal has lost many industries including textiles, all companies are closed, but consumer items, electronics goods, banaspati ghee, cigarette, liquor, tourism, food products etc industries have achieved good progress in return to the textiles and automobiles industry. The sectors in which nepal gained are also not more competitive then Indian counterparts but competition shows the path for excellence and survival, and this ultimately brings competitiveness. The trade balance is becoming less -ve for the nepalese after FTA.

The same was there at SriLanka-India FTA, Thai-China FTA, Japan-US FTA etc. The weaker too that gains in FTA but we have a habbit of comparing with the other counterparts, which hurt us. In all these FTAs the most competitive gained more but not at the cost of the other player but both gain while the trade with external world diminishes.

No cry friends, India will survive when we have China in SAARC and SAFTA, once survived after initial loss, India will start gaining. thus India and China will lessen their trade dependency with the West and then inclusion of Iran may be the next step for us to go.

"FOCUS ON STRENGTHS NOT LINGER ON WEAKNESSES."

This is main point which we need to take in mind. The wins will follow.

Let Chinese gain, but we must also gain. And we wont lose competiting with majority govt. funded and cultured inefficient Chinese companies. Cheap goods are the not the only goods that are sold in markets. If they can make cheaper then us, then we are lucky to get cheaper goods to consume while our labor is available to do some other more productive works. Our inflation rate will come down. For unemployment we need not worry once we have China-SAARC FTA majority of investments in the world will come to this locality and no investor can keep himself away from us.

Lets go for it.