ABSTRACT
In the post-cold war era, the inter-state relations are under the sway of two emerging tendencies. First, it may not appear plausible but it is true that globalization has simultaneously unleashed the forces of global interdependence as well as regional integration. In region after region, it may be that Europe, North America, South East Asia or Africa are on the way in experimenting with a variety of regional or sub-regional free trading arrangements, comprehensive economic partnerships, custom unions and others. This chapter includes only those countries in the region of "South Asia", which are members of South Asian Association for Regional Cooperation (SAARC). Accordingly, South Asia consists of eight nations: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. In order to expand cooperation in trade and further deepen the integration of the regional economies, the SAARC Agreement on Trade in Services was signed at the Sixteenth SAARC Summit held in Thimphu in April 2010.
