Latest news with #ASEAN-IndiaTradeinGoodsAgreement
The Hindu
19 hours 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.
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
India-Philippines strategic partnership to strive for PTA conclusion
India and the Philippines today announced the establishment of a strategic partnership between the two sides following talks between Indian Prime Minister Narendra Modi and Philippine President Ferdinand R Marcos Jr in New Delhi. Guided by the Plan of Action (2025-2029) adopted by the two countries today, the India-Philippines Strategic Partnership includes economic, trade and investment cooperation. India and the Philippines today announced the establishment of a bilateral strategic partnership following talks between Indian PM Narendra Modi and Philippine President Ferdinand R Marcos Jr in New Delhi. Apart from promoting business and commercial linkages, both sides will strive for expeditious conclusion of the negotiations of the proposed preferential trade agreement. Apart from promoting business and commercial linkages, both sides will strive for expeditious conclusion of the negotiations of the proposed preferential trade agreement (PTA) for further promotion of trade. Both sides will promote further collaboration to facilitate two-way investments. Bilateral trade was worth approximately $3.3 billion in fiscal 2024-25. Both the nations will facilitate early resolution of market access issues, foster greater integration with global supply chains and lay a robust foundation for new areas of collaboration, especially in renewable energy, critical minerals, electric vehicles, digital technologies and artificial intelligence, robotics, biotechnology, creative industry and start-ups, construction and infrastructure, iron and steel, shipbuilding and ship repair, agriculture and tourism. Both sides will facilitate joint customs cooperation committee meetings for improved trade facilitation through simplified customs procedures, a release from the Indian Prime Minister's Office said. They will expedite the review of ASEAN-India Trade in Goods Agreement (AITIGA) to make it more effective, user-friendly, simple and trade facilitative for businesses. Other elements of the partnership are cooperation in politics, defence, security, maritime issues, science and technology, connectivity, culture, tourism, and legal and judicial services. Fibre2Fashion News Desk (DS)
Nikkei Asia
04-08-2025
- Business
- Nikkei Asia
India hopes for 'some conclusion' of ASEAN FTA review by October
The ASEAN-India Trade in Goods Agreement entered into force in January 2010, but there has not been a formal review in the 15 years since. Typically, the first review of an FTA is undertaken within two years of implementation, one expert noted. (Nikkei montage/Source photos by AP and Reuters) KIRAN SHARMA NEW DELHI -- Even though much ground needs to be covered in negotiations to review the India-ASEAN free trade agreement by the end of this year, New Delhi is hoping for "some kind of conclusion" by late October when an annual summit with the 10-country grouping takes place.
Time of India
15-07-2025
- Business
- Time of India
India's FTA gap: New Delhi has trade deficit with 5 partners; Asean deal under review
India has a merchandise trade deficit with five of the seven countries and blocs it has signed free trade agreements (FTAs) with, ever since those deals came into effect, as per an analysis by ET . Together, these partners made up nearly 37% of India's overall trade deficit in FY25. Since 2021, India has entered FTAs with Mauritius, the UAE, the European Free Trade Association (EFTA), and Australia. While the deficit with the UAE has widened since 2022, the trade gap with Australia has narrowed. The agreement with the four-member EFTA is due to take effect in October, and India's deficit with the bloc declined in FY25 from the previous year. With Mauritius, India maintains a small surplus. In contrast, FTAs signed in the 2000s have generally seen India's trade deficit continue to rise, except in the case of the South Asian Free Trade Area (Safta), where India enjoys a surplus. The trade shortfall with the 10-member ASEAN bloc, for instance, jumped to $45.2 billion in FY25 from $25.8 billion in FY22 and $21.8 billion in FY19. Deficits with Japan and South Korea have also increased. A government official said India's newer trade agreements are seeing better utilisation than older ones, with continued efforts to keep trade balanced. 'A review of the trade pacts with Asean and Korea is underway,' said another official, adding, 'However, the Asean is stonewalling the review and we are trying to assess why the utilisation of the deal is low.' The ASEAN-India Trade in Goods Agreement was implemented in 2010. In FY25, India's goods exports to the ASEAN bloc fell 5.4% year-on-year to $38.96 billion, while imports rose 5.6% to $84.16 billion. Though India continues to post a surplus under the 21-year-old Safta agreement, the surplus has declined between FY22 and FY25. Between FY19 and FY25, India's reliance on FTA partners has grown. Imports from all FTA countries and blocs rose during this period, while export growth was limited to a few. Currently, these partners account for 28.1% of India's exports and 29% of its imports. According to an analysis by the commerce and industry ministry, the number of preferential certificates of origin issued under India's FTAs with the UAE and Australia increased by 24.7% and 19% respectively last year. The analysis is significant as utilisation rates under trade agreements with Korea, Japan, and ASEAN remain low, ranging between 4% and 25% across several products. Preferential certificates of origin allow exporters to avail tariff concessions offered under free trade agreements. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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)
