Speaking on how the South Asian integration fit into the NAFTA model, Mr Arvind Subramanian, Chief Economic Advisor, Ministry of Finance, India, stated that the dissimilarities between the economies of the countries involved in NAFTA and ASEAN when compared to the South Asian economies points towards limited adoption of the NAFTA model in the South Asian Economic scenario. He was speaking at a session on ‘Expanding intra-regional trade – drawing lessons from ASEAN and NAFTA’, at the South Asia Economic Conclave being organized in New Delhi by the Confederation of Indian Industry (CII) in cooperation with the Ministry of Commerce & Industry, Government of India and the World Bank. 

The Chief Economic Adviser went on to mention that in certain spheres including power, infrastructure and services India stands to benefit from regional cooperation. Standing by his initial remark he continued that although economic cooperation with South Asia is an important objective, it is not an overwhelming economic objective for India currently. 

According to Mr Ishrat Hussain, Dean and Director, IBA, Pakistan, the poverty reduction properties of free trade agreement which included generation of employment, elevated growth rate, etc. should be given due attention. 

Mr Harsha Vardhan Singh, Former Deputy Director General, WTO, highlighted the importance of influential and directive policy making and increased effort in the business to business engagements. He remarked that global value chains are the order of the day and urged for the development of the regional supply chain to enhance economic output and cooperation. 

Providing a detailed picture of the impact of NAFTA on the economy of Mexico, Ms Beatriz Gardoqui, Former Undersecretary for Foreign Trade, Mexico, pointed out to the changes in the Mexican economy and a significant hike in exports in the post- NAFTA period. 

Mr Jayant Menon, Lead Economist, Asian Development Bank, while indicating the importance of strengthening the home economy as the first approach, directed South Asian countries to take a gradual approach towards achieving a stellar regional economic cooperation. 

New Delhi
September 29, 2015