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The Hindu
a day ago
- Business
- The Hindu
Indian-ASEAN officials to meet beginning August 11 for ASEAN Trade in Goods Agreement review
As India braces for the impact of U.S. tariffs of 25% that went into effect from August 7, the government is seeking to shore up other trade negotiations, including with ASEAN countries beginning Monday (August 11, 2025) in New Delhi. A delegation of the 10-nation ASEAN, or the Association of South East Asian Nations, will hold talks with Commerce Ministry officials from August 11-14, sources confirmed, for the next round of talks on a review of the ASEAN-India Trade in Goods Agreement (AITIGA). The talks come two months after Commerce and Industries Minister Piyush Goyal called the 2009 agreement 'silly' as it gave India's Asian competitors easy access to its markets, a comment that led to speculation that India was planning to pull out of the agreement. The comment also caused some outrage amongst ASEAN members, as he referred to them as the 'B-team of China', referring to India's concerns over Chinese goods flooding the market via these countries. However, in July, after a meeting between Prime Minister Narendra Modi and Malaysian PM Anwar Ibrahim, who is chairing the ASEAN Summit this year, as well as a meeting between Mr. Goyal and Malaysian Minister of Investment, Trade & Industry Tzafrul Aziz, the two sides agreed to 'fast-track' the AITIGA review to be completed by the end of this year. In addition, officials are preparing for a possible visit by Mr. Modi to Kuala Lumpur for the ASEAN-India Summit and East Asia Summit, at the end of October. On Friday, Mr. Ibrahim announced that he 'looks forward to welcoming' ASEAN leaders and dialogue partners, including United States President Donald Trump and Chinese President Xi Jinping, although China normally attends ASEAN Summits at the level of Premier. The push for a quick end to AITIGA review talks, amongst a number of other trade agreement negotiations the government is pursuing with the European Union, Australia and New Zealand, has been given further impetus by the slapping of 25% additional penalties on India by the U.S. last week. Although the government still hopes to continue negotiations with the U.S. for a free trade agreement, it is studying the impact of the tariffs, particularly as its export rivals in Asia, especially ASEAN countries, have received lower rates from the U.S., of around 19%. Government sources and ASEAN diplomats said that although nine rounds of talks in the past year with ASEAN officials have not produced a breakthrough yet, they are hopeful of some movement this week. 'There has been very little headway so far in reviewing the agreement with ASEAN. We are trying to address the fact that, under the existing deal, our imports have grown far in excess of our exports to these countries. A good deal needs to have balance,' a source told The Hindu. Data with the Ministry of Commerce and Industry show the trade balance between India and the ASEAN grouping has been turning increasingly unfavourable for India over the years. In 2017-18, the earliest year for which the Ministry has made data available, India's exports to the ASEAN countries stood at $34.2 billion while imports from the ASEAN countries were $47.1 billion, leading to a trade deficit of $12.9 billion. As of 2024-25, India's exports to the ASEAN countries grew at an average annual rate of 1.7%, to $39 billion. Imports, on the other hand, grew at 7.5% on average every year, to $84.2 billion by 2024-25. The trade deficit swelled to $45.2 billion last year. Apart from the 'rules of origin' issue vis-à-vis Chinese goods, India has also raised the inequality in tariff lines opened, where India opened up about 71% of its lines, while ASEAN countries offered considerably less, including Indonesia at just 41%. ASEAN countries comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam also led the effort for the Regional Comprehensive Economic Partnership (RCEP), a 15-nation FTA, from which India walked out in 2019.
The Hindu
4 days ago
- Business
- The Hindu
Mending ties: On state visit of Philippines President to India
The state visit of Philippines President Ferdinand Marcos Jr. to India that ends on Friday (August 8, 2025), and his meetings with Prime Minister Narendra Modi provided a hard power edge to the two countries, with historical-cultural ties between them, by signing a Strategic Partnership Agreement. On his first visit to India since taking office in 2022, Mr. Marcos has taken a strong position against Chinese incursions in the West Philippine Sea, and has been keen to engage India more closely. Coinciding with his visit, the Indian Navy held its first joint maritime exercises with the Philippine Navy in the South China Sea area. The drills were criticised by China. India has consistently supported the 2016 UNCLOS tribunal arbitration award in favour of the Philippines, calling on China to respect the multilateral order in the Indo-Pacific, and Mr. Marcos appreciated this. Moreover, while India has signed dozens of such Partnership Agreements worldwide, for the Philippines, India is only its fifth Strategic Partner — after Japan, Vietnam, Australia, and South Korea. The Philippines is also the first export destination for the BrahMos missile, and Mr. Marcos is understood to have expressed interest in buying more Indian military hardware. The two sides signed agreements to enhance strategic cooperation, including an exchange of Terms of Reference for all three services and the Coast Guard. They also agreed to free up visas and begin direct flights. There is no substantial bilateral trade at present — $3.3 billion in 2024-25 — but investments are growing as technology and pharma companies have tied up in many areas. The Marcos-Modi meetings sent out a more comprehensive message for India's ties with South East Asia. The Philippines is the incoming chair for ASEAN in 2026, and the coordinator for the ASEAN-India comprehensive strategic partnership. The invitation to Mr. Marcos was also a way of easing relations that have been riled by Commerce Minister Piyush Goyal's unnecessarily abrasive remarks in June, where he called many ASEAN countries the 'B-team of China', and mocked the 2009 ASEAN-India Trade in Goods Agreement (AITIGA). The government has since moved to fast-track talks to revise the AITIGA, with talks in Delhi next week. India and the Philippines have separately discussed launching talks for a Preferential Trade Agreement (PTA), indicating India's intention to keep negotiating for a more liberalised trade regime globally even as it faces the brunt of the U.S.'s tariffs and penalties. The visit is a reminder that India's interest in peace and security in the Indo-Pacific is not restricted to the Quad grouping, and that it is mindful of strengthening ties with all the countries in the region, especially as it essays the current geopolitical turbulence with bigger global powers.
Hindustan Times
17-07-2025
- Business
- Hindustan Times
Spike in imports raises trade diversion concerns
NEW DELHI: India has initiated investigations into an unusual spike in a month in imports of over a dozen products from countries including China, Malaysia, Indonesia, Bangladesh and Nepal, even as the world witnesses large-scale trade diversion because of the US tariff barriers, government officials said. The world's largest container ship, MSC IRINA, is berthed at Vizhinjam port in Thiruvananthapuram, on June 9, 2025. (AP FILE) At least 14 products are under the scanner, including different chemicals, steel tubes, various types of glasses, jute items and paperboards, said a commerce ministry official who asked not to be named. 'Industry bodies, sectoral ministries and government agencies are on high alert to report any unusual import surge due to trade diversion. Based on their inputs, the government will conduct an investigation and take remedial action immediately to protect domestic units,' he added. There has been a sharp 35% decline in Chinese exports to its biggest market, the US in May after the Trump administration announced ' Liberation Day' tariffs from April 5. Despite that China's total exports saw a positive growth, raising suspicion that some of its America-bound merchandise is now being diverted to other markets, a second official said. Prime facie, most of these merchandise originate from China and are shipped via those countries that have favourable trade relationship with India, this person added, requesting anonymity. 'For example, there is an import surge of textured tempered coated and uncoated glass from Malaysia and virgin multi-layered paperboard from Indonesia. It is suspected that some of them originated in China and entered India through Asean FTA.' The Asean-India Trade in Goods Agreement (AITIGA), signed by the then commerce minister Anand Sharma on August 13, 2009, has become a sore point between India and the 10-member block Association of Southeast Asian Nations (Asean). After finding that India-Asean trade deficit surged post AITIGA from from a mere $5 billion in 2010-11 to $43.57 billion in 2022-23, the Modi government has insisted on review of its terms, such as rules of origin (ROO). Negotiations are still on between the two parties despite nine rounds of meetings. 'Talks are progressing in a positive direction and we expect to resolve all issues by the end of this year,' a third official with direct knowledge of the matter said. The 10th round of India-Asean review talks is expected to be held in New Delhi in mid-August. The matter could be resolved by October when a final round (the 11th) of talks will take place in Malaysia, he added. While plugging loopholes in old trade agreements such as the FTA with Asean is a medium-term objective, India is also taking anti-dumping measures against any large-scale trade diversions to India, the second official said. 'The commerce ministry is providing data and information on a regular basis to line ministries to ascertain any surge in imports.' The ministry of commerce and industry plans to launch a monthly 'Global Trade Watch' soon, focusing on product-specific and country-specific trade strategy, the first official said. The monthly report will be circulated within the ministry from next month so that they will factor-in global opportunities and threats and monitor any unusual import surge in their respective domains, he said. Meanwhile, the Directorate General of Trade Remedies (DGTR), the erstwhile Directorate General of Anti-dumping and Allied Duties, has already initiated anti-dumping investigation on imports of thermoplastic polyurethane-based paint protection files, Broms OTBN, and para-tertiary butyl phenol coming from China.
Malaysia Sun
15-07-2025
- Business
- Malaysia Sun
MoS Margherita emphasises need for early completion of review of ASEAN-India Trade in Goods Agreement
New Delhi [India], July 14 (ANI): Minister of State for External Affairs Pabitra Margherita, during his recent Malaysia visit, emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation, as per a statement from the MEA. Minister Pabitra Margherita led the delegation at the ASEAN-India Foreign Ministers' Meeting (AIFMM), 15th East Asia Summit Foreign Ministers' Meeting (EAS FMM) and 32nd ASEAN Regional Forum on July 10-11, 2025 in Kuala Lumpur, Malaysia. In his remarks at the AIFMM on July 10, MoS Margherita extended India's continued support to Malaysia's chairmanship of ASEAN and reiterated India's support for ASEAN unity and centrality. Further, MoS Margherita appreciated progress in the implementation of the 10 Point proposal of Prime Minister Narendra Modi, announced at the 21st ASEAN-India Summit in Lao PDR in 2024 to further strengthen the ASEAN-India Comprehensive Strategic Partnership and shared the initiatives taken this year under the India -ASEAN Year of Tourism. 'He emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation,' Ministry of External Affairs said in the statement Monday. At the 15th EAS FMM on July 11, 2025, MoS Margherita underlined India's contribution towards strengthening the Leaders-led EAS platform as the EAS mechanism completes 20 years and exchanged views on the current regional and international developments. Preparations for the upcoming 20th EAS Summit, scheduled in October 2025, were also discussed. At the ASEAN Regional Forum (ARF) held on July 11, MoS Margherita participated in a constructive exchange of views on pressing international and regional developments, and deliberated on the future trajectory of the ARF process. He underscored India's deep concerns over the persistent threat posed by Pakistan-sponsored cross-border terrorism, particularly in the wake of the horrific terror attack in Pahalgam in the Indian UT of Jammu and Kashmir. The Minister reaffirmed India's resolute commitment to combating terrorism in all its forms and manifestations. He commended the ASEAN-led mechanisms, including the emerging regional security architecture, as an important platform for candid discussions and collective efforts to address the challenges in the region. Minister Margherita also held bilateral meetings with the Secretary General of ASEAN and the Foreign Ministers of Cambodia, the Philippines, and Timor Leste, on the sidelines of the ASEAN-related meetings. (ANI)
India Gazette
14-07-2025
- Business
- India Gazette
MoS Margherita emphasises need for early completion of review of ASEAN-India Trade in Goods Agreement
New Delhi [India], July 14 (ANI): Minister of State for External Affairs Pabitra Margherita, during his recent Malaysia visit, emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation, as per a statement from the MEA. Minister Pabitra Margherita led the delegation at the ASEAN-India Foreign Ministers' Meeting (AIFMM), 15th East Asia Summit Foreign Ministers' Meeting (EAS FMM) and 32nd ASEAN Regional Forum on July 10-11, 2025 in Kuala Lumpur, Malaysia. In his remarks at the AIFMM on July 10, MoS Margherita extended India's continued support to Malaysia's chairmanship of ASEAN and reiterated India's support for ASEAN unity and centrality. Further, MoS Margherita appreciated progress in the implementation of the 10 Point proposal of Prime Minister Narendra Modi, announced at the 21st ASEAN-India Summit in Lao PDR in 2024 to further strengthen the ASEAN-India Comprehensive Strategic Partnership and shared the initiatives taken this year under the India -ASEAN Year of Tourism. 'He emphasised the need for early completion of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and underlined development partnerships in digital, maritime, health and innovation,' Ministry of External Affairs said in the statement Monday. At the 15th EAS FMM on July 11, 2025, MoS Margherita underlined India's contribution towards strengthening the Leaders-led EAS platform as the EAS mechanism completes 20 years and exchanged views on the current regional and international developments. Preparations for the upcoming 20th EAS Summit, scheduled in October 2025, were also discussed. At the ASEAN Regional Forum (ARF) held on July 11, MoS Margherita participated in a constructive exchange of views on pressing international and regional developments, and deliberated on the future trajectory of the ARF process. He underscored India's deep concerns over the persistent threat posed by Pakistan-sponsored cross-border terrorism, particularly in the wake of the horrific terror attack in Pahalgam in the Indian UT of Jammu and Kashmir. The Minister reaffirmed India's resolute commitment to combating terrorism in all its forms and manifestations. He commended the ASEAN-led mechanisms, including the emerging regional security architecture, as an important platform for candid discussions and collective efforts to address the challenges in the region. Minister Margherita also held bilateral meetings with the Secretary General of ASEAN and the Foreign Ministers of Cambodia, the Philippines, and Timor Leste, on the sidelines of the ASEAN-related meetings. (ANI)
