Impediments to Intra-regional Trade in South Asia: A Stakeholder Perspective

Abstract

South Asian Association for Regional Co-operation (SAARC) was founded to achieve better standards of living through greater development in South Asia. SAARC has moved nearer in even though many of its member countries failed to realize the benefit of developing intra-regional trade. Despite the formation of a South Asian Free Trading Area (SAFTA) intra-regional trade performance is not satisfactory relative to South Asia’s total trade flow. The main objective of this study is to identify the impediments to boost the intra- to a status of a borderless market regional trade flow of South Asian Region. The study selected the qualitative research methodology where twenty in-depth face to face interviews were carried out with both local as well as regional stakeholders who engage in South Asian regional trade activities. Template analysis was used as the method of data analysis. Secondary data sources used to triangulate the interview data. The research identified four (4) major impediments as the Regional market structure, Regional social structure, Political and economic structure, and Tariff structure. Implications and recommendation developed as it was identified the attractiveness of niche markets, the suitability of localizing marketing strategies, the advantage of entering into strategic alliances between regional and outside companies, and suitability of developing a regional supply chain network and a regional brand name.