Abstract: India-Sri Lanka Bilateral Free Trade Agreement signed in1998 was a pioneering attempt in the direction of trade liberalization in South Asian region.

Abstract: Several South Asian countries have joined the current wave of bilateral and sub-regional free trade agreements (FTA) in the region.

Abstract: Globalization process has entailed trade openness, greater emphasis on foreign direct investment, stabilization policies, redefining the role of the state, among others.

Abstract: This paper presents a brief non-technical overview of the conceptual basis of RTAs by highlighting the implications of concepts like trade creation and trade diversion.