UPSC CDS GS Economy Questions Part 2

The South Asian Free Trade Agreement (SAFTA) is a trade liberalisation programme agreed to among the South Asian countries(not South-Eastern Asian countries). So, statement (1) is incorrect. Itcreated a free trade area in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAFTA came into force since January 1, 2006, replacing South Asian Preferential Trade Agreement (SAPTA), which was operative among SAARC countries since December 7, 1995. According to SAFTA, the Ministerial Council shall meet at least once every year or more often as and when considered necessary by the Contracting States. So, only statement (2) is correct.