Read the below statements marked as Assertion (A) and Reason (R).
Assertion (A): Pakistan's move from a 'Positive List' to a 'Negative List' of 1209 tariff lines for Indian goods under SAFTA was challenged by India as a violation of the agreement.
Reason (R): Article 23 of the SAFTA Agreement permits member countries to make unilateral tariff reservations in case of political disagreement.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. A is true, but R is false.
The assertion is correct because India did object to Pakistan’s "Negative List," arguing it restricted trade contrary to the South Asian Free Trade Area (SAFTA) spirit. However, the reason is incorrect; Article 23 of SAFTA actually deals with "Withdrawal" from the agreement, not unilateral tariff reservations for political disputes. SAFTA aims for trade liberalization, and there is no provision allowing members to arbitrarily block goods based on political disagreements under that specific article.