The Union Cabinet approves South Asian Free Trade Agreement (SAFTA), which is to come into effect from January 1, 2006 this will be held in a Cabinet meeting today, 29 December. The Cabinet may also take up the Hong Kong WTO ministerial declaration for the meeting. As per the provisions in SAFTA, member countries, barring the least developed countries, will bring down their tariffs by 20 % at the end of first year. They would bring down their tariffs in the range of 0-5 % after seven years, effectively reducing their import duties by 15 % every year. India has a negative list of 884 items but for Least Developed Countries (LDCs) it has 764 items. These are those sensitive items on which no tariff reduction would take place. New Delhi will also convert its specific duties into their ad
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| valorem equivalents on certain textiles items over a time period of three years, a move expected to give market access to textiles from Pakistan. SAARC's total exports in 2003-04 stood at US$ 4,170.5 million, while its imports stood at US$ 679.68 million. The Cabinet is also expected to take up the Hong Kong WTO ministerial declaration for discussion. Mr. Kamal Nath Commerce and Industry Minister, who led the Indian delegation at the WTO meeting, will make a presentation to the Cabinet. The Cabinet is also likely to take a Bill, which will help to simplify tax laws. Mr. P Chidambaram Finance Minister has already announced the Government's intention to simplify tax laws to reduce disputes and improve compliance. The Cabinet may also take up the Government Securities Bill, which will enable Reserve Bank to trade government papers in demat form. 
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