Question

When was SAFTA formed?

• A. 2003
• B. 2006
• C. 2008
• D. 2009

Hint:

For international agreements, distinguish between the 'date of signing' and the 'date of enforcement'. Often, there is a gap between the two. Questions can be tricky, so read carefully. In this case, 'formed' refers to the year it became operational.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks for the year of formation of SAFTA.
Step 2: Key Concept:
SAFTA stands for the South Asian Free Trade Area. It is a trade agreement by the member nations of the South Asian Association for Regional Cooperation (SAARC) to create a free trade zone.
Step 3: Detailed Explanation:
The Agreement on the South Asian Free Trade Area (SAFTA) was signed on 6 January 2004 during the 12th SAARC Summit held in Islamabad, Pakistan.
However, the agreement came into force on 1 January 2006, and the trade liberalization program commenced from 1 July 2006.
Since the question asks when it was "formed" or became operational, 2006 is the correct year. The signing was in 2004, but its implementation began in 2006. The options point towards the year it came into force.
Step 4: Final Answer
The SAFTA agreement came into force in the year 2006.