Nepal, which has already set stride into the South Asian Free Trade Area (SAFTA), is implementing the liberalization of rate of customs duty on imported goods from coming August, state-run Radio Nepal reported on Monday.

The report quoted Joint-secretary at the Ministry Naindra Rasa Upadhyaya as saying that other members of the South Asian Association for Regional Cooperation (SAARC) will be bringing down the rate of customs duty from July 2006.

There is no probability that Nepal will have to bear any kind of loss following the enforcement of the SAFTA, which is believed to play a pivotal role in the promotion of trade and investment in the region, he said.

Previous bilateral relations about trade will remain intact, and the SAFTA will provide additional momentum to the promotion of trade, Upadhyaya added.

Shedding light on positive aspects of the SAFTA, Upadhyaya emphasized that mutual discussions need to be continued regarding the utilization of Indian territory for strengthening Nepal's trade relations with India and other countries.

Member countries of SAARC entered into the SAFTA beginning Sunday. SAARC groups Bangladesh, India, Pakistan, Bhutan, Maldives, Sri Lanka and Nepal.

According to the state-run Radio Nepal, the SAFTA now becomes the world's largest free trade area effective in the South Asian region marked by poverty and backwardness.

Accordingly, Nepal, Bangladesh, Bhutan and Maldives will have to maintain the customs duty from zero to five percent within the next 10 years while India, Pakistan and Sri Lanka will have to do the same within seven years.

Source: Xinhua