Abstract
The path to the South Asian Economic Union (SAEU) will have its own route, based on the contexts prevail in South Asia. The major challenges to move towards SAEU include a reduction in the sensitive list, removal of Non-Tariff Barriers (NTBs), effective and faster implementation of the South Asian Agreement on Trade in Services (SATIS), effective regional investment cooperation, promotion of trade facilitation measures, promotion of regional value chains, cross-border energy cooperation, dealing with informal trade and strengthening institutions. South Asia is at the verge of a new regime of regional integration which has to involve integration in trade in goods and services, integration in economic growth processes, promotion of regional investment and trade nexus, and harmonization of economic and trade policies.
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