What poisons the Saarc spirit?
• Low-grade hostility and inherent suspiciousness in the relationship between India and Pakistan – this makes it difficult for even the most minimal forms of cross-border trade, and impinges on efforts to improve communication links. Other business initiatives, such as the granting of most-favoured-nation status, are also affected. • The smaller countries perceive that India, the largest country in the region, throws its weight around. Most of the smaller countries, for instance, have long been reluctant to dismantle trade barriers for fear of being swamped by cheaper Indian products. They complain that agreed tariff concessions on 2,000 items do not apply to potential exports from Saarc’s smaller members. • The sensitive issue of Bhutanese refugees of Nepalese origin, now living in refugee camps in Nepal. Although the Bhutanese King has announced that he will not be attending the summit because of what was officially called “domestic engagements”, it is unclear if the Saarc spirit has
