No headway in India-ASEAN trade deal review despite 9 meetings in last one year
Over the last one year, officials of the government of India have held nine meetings with officials from the Association of Southeast Asian Nations (ASEAN) to review the trade agreement signed with the grouping, but no progress has been made on any item, according to sources.
'After a lot of pressure from the government of India, they agreed for a review of the ASEAN-India Trade in Goods Agreement (AITIGA),' a source said. 'Yet, after even nine rounds of review, they have not accepted terms on even one item.'
Under the original agreement, signed in 2009, India opened 71% of its tariff lines to the ASEAN countries whereas countries like Indonesia opened 41%, Vietnam 66.5%, and Thailand 67%, the source explained.
'In the last 15 years, our exports to ASEAN have doubled, but our imports have tripled,' they said. 'These factors necessitated a review of the deal but we are being stonewalled.'
The review by a joint committee began in February 2024.
India had found through its investigations that there are countries in the ASEAN grouping that were receiving highly subsidised raw materials from China, processing them, and then exporting them to India, the source said.
'When we (the current government) saw this was happening, we imposed an anti-dumping duty on the originating country as well,' the source said.
The trade deal with ASEAN also allowed the dumping of steel in India, they added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
6 hours ago
- Time of India
Asean not keen to review trade pact: Government
NEW DELHI: Commerce and industry minister Piyush Goyal on Tuesday said little headway was made in the review of 15-year-old free trade agreement (FTA) with Asean, despite nine rounds of negotiations since 2022. The minister's statement came days after controversy erupted over his comments on some of the Asean countries being a B-team of China. While the assertion was not taken favourably by some of the countries. which are part of the 10-nation trading bloc, the commerce department and the ministry of external affairs are seen to be on the same page, with sources confirming that there is an attempt to stonewall the talks. In 2019, Asean agreed to the review after much pushing by India, but then did not commence negotiations for almost two years. Indian authorities argued that China worked out arrangements through companies and affiliates, which allowed it to route subsidised goods through one of the countries that make up the trading bloc. The Modi govt argued that trade deal with Asean was not negotiated properly by the UPA, resulting in the terms of trade being tilted in favour of these countries, which was visible through the rising trade deficit. Officials pointed out that in return for India opening up 71% of its tariff lines, Indonesia responded for only 41% of the products, with two-thirds of the trade liberalised in the case of Vietnam and Thailand - areas where India is seeking correction. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like BMW i4. 100% Elétrico. BMW Saiba Mais Undo Addressing an event to commemorate the third anniversary of Vanijya Bhawan, the first new office block to come up along Kartavya Path, Goyal said that India was now seeking to enter into FTAs with advanced economies that were complementary and not competing for the same market. "Instead of competition, it is a spirit of collaboration," he told reporters. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
9 hours ago
- Business Standard
Asean stonewalling progress of FTA review talks with India: Official
Asean nations are stonewalling the progress of the ongoing negotiations on the review of the existing free trade agreement in goods signed in 2009, and the talks are moving "very" slowly, an official said on Monday. The review of the agreement is a long-standing demand of Indian industry and India is looking forward to an upgraded pact, which will address the current asymmetries in bilateral trade and will make trade more balanced and sustainable. "So far, nine rounds of talks have been completed. They are going very slow. Very less progress is there. Asean is stonewalling the talks," the official, who did not wish to be named, said. After the implementation of the agreement, India's exports stood at only about $ 38-39 billion annually, while imports from the 10-nation Asean bloc have jumped to $ 86 billion, the official added. Asean countries have opened less number of tariff lines or product categories for India. India has offered duty concessions on over 71 per cent of the tariff of lines to Asean countries. Asean members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Indonesia has opened 41 per cent of its tariff lines, Vietnam 66.5 per cent and Thailand 67 per cent. "Is this a good agreement," the official wondered. The official added that the Indian industry is not at all happy with the agreement. A free trade agreement in goods between India and the 10-nation bloc ASEAN (Association of Southeast Asian Nations) was signed in 2009. The ASEAN trade deal came into force in January 2010. In August 2023, both sides announced a complete review of the existing agreement in goods by 2025. ASEAN as a group is India's one of the major trade partners with about an 11 per cent share in the country's global trade. India is asking for a review to eliminate barriers and misuse of the pact. Recently speaking at the India Global Forum (IGF) session on UK-India Science, Technology and Innovation Collaboration at the Science Museum in London, Commerce and Industry Minister Piyush Goyal said, "There was a point of time 15 years ago when we were more focused on doing FTAs with countries who were our competitors. So if I am doing an ASEAN agreement, it really is silly because (that is) opening up my market to my competitors, many of whom have now become the B team of China". "So effectively and indirectly, I have opened up my market for goods that find their way from China into India," the commerce minister has said.
Time of India
11 hours ago
- Time of India
ASEAN stonewalling FTA review, 9 rounds done: Official
The 10-member ASEAN has stonewalled the review of its free trade pact with India, a critical demand of New Delhi as it seeks to balance its trade with the bloc. The ASEAN-India Trade in Goods Agreement (AITIGA), came into effect in 2010, is currently under review. India has been demanding a review of the pact to eliminate barriers and its misuse. The review is aimed to be completed this year. 'Diplomatically, the relations are very good but why should our industry suffer? It's the anguish of the Indian industry as nine rounds have happened and the Asean have stonewalled the progress,' said an official. Last week, commerce and industry minister Piyush Goyal slammed the ASEAN describing several countries in the region as a 'B team of China' and the trade pact with the bloc 'silly'. Asean, or the Association of Southeast Asian Nations, comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. India's goods exports to the ASEAN shrank 5.4% on-year in FY25 to $38.96 billion while rose 5.6% to $84.16 billion. 'India's exports have doubled but imports trebled since the pact. There is a whopping 26 times increase in imports,' said an official. The AITIGA is being reviewed as India seeks to eliminate barriers and misuse of the trade pact. Concerns have also been raised about routing of goods to India from third countries especially China through Asean members by taking the duty advantages of the agreement. India had opened 71% of tariff lines while Indonesia opened only 41%, Vietnam 66.5%, and Thailand opened 67%, said another official. As per the official, subsidised goods from a third country were found to be dumped until India levied anti-dumping duty. Similarly, India cracked down on dumping of steel imports via Safeguard duty as the melt-and-pour clause was not a part of the AITIGA.
