With support from The Asia Foundation, the Consumer Unity and Trust Society in India (CUTS International) implemented a project titled “Cost of Economic Non-Cooperation to Consumers in South Asia,” which highlighted the costs to South Asian consumers as a result of existing trade restrictions in the region. The study was conducted in five South Asian countries: Bangladesh, India, Nepal, Pakistan and Sri Lanka. IPS carried out the survey in Sri Lanka. Based on a meta-analysis of the existing literature on economic integration in South Asia, a quantitative analysis, and a survey of some key stakeholders on their perceptions of regional trade integration, the study estimated the gains that would accrue to consumers from enhanced intra-regional trade. Quantitative analysis shows that importing from within the region as opposed to from outside could lead to savings of approximately US$ 2 billion a year in terms of aggregate consumer expenditure. The perception survey revealed that a lack of awareness of potential benefits and minimal representation of consumers in the trade policy making process, as opposed to producers, has led to low expectations about consumer welfare gains.
