Practicing Success

Target Exam

CUET

Subject

Political Science

Chapter

Contemporary World Politics: Contemporary South Asia

Question:

Read the passage and answer the question.

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across borders. This is the spirit behind the idea of the South Asian Free Trade Agreement (SAFTA). The Agreement was signed in 2004 and came into effect on 1 January 2006. SAFTA aims at lowering trade tariffs. But some of our neighbors fear that SAFTA is a way for India to invade their markets and to influence their societies and politics through commercial ventures and a commercial presence in their countries. India thinks that there are real economic benefits for all from SAFTA and that a region that trades more freely will be able to cooperate better on political issues. Some in India think that SAFTA is not worth the trouble since India already has bilateral agreements with Bhutan, Nepal, and Sri Lanka.

Out of the given options, choose the most appropriate one. The Spirit behind the idea of SAFTA is: 

Options:

It would improve the bilateral relations between India and Pakistan

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across the borders

Formation of SAFTA would enable the South Asian countries to compete with the world

Formation of SAFTA would promote religious harmony among the people of this region

Correct Answer:

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across the borders

Explanation:

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across borders. This is the spirit behind the idea of the South Asian Free Trade Agreement (SAFTA).