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India-ASEAN

Over a period of five years, India and the Association of South East Asian Nations (ASEAN) negotiated a bilateral free trade agreement — with plenty of difficulty.

Under their initial bilateral framework agreement, signed in Bali on 8 October 2003, the India-ASEAN FTA for goods was supposed to be finalised by 30 June 2005. Negotiations on services would start in 2005 and end in 2007.

After a year’s delay, discussions ground to a halt in June 2006 when India released its ’negative list’ of items to be excluded from tariff reductions — with 900 products, both industrial and agricultural, figuring on the list. (This was down from India’s initial negative list of 1,410 items.) India’s agriculture ministry, in particular, was arguing hard to exclude commodities like rubber, pepper, tea, coffee and palm oil from the deal. Rules of origin have been the other thorny issue.

Two months later, in August 2006, Delhi issued a revised list, pruned down to 560 items. However, tremendous fears about the impacts of the India-ASEAN FTA on farmers continued to rattle the discussion.

By early 2007, in the midst of the new biofuels boom, palm oil became a central blockage point as Indonesia and Malaysia, both top palm oil exporters, struggled to get India to lower its tariffs.

On 28 August 2008, a deal was finally concluded. The agreement was signed in 2009 and took effect (trade in goods) with 5 of the countries and India in January 2010, (Singapore, Malaysia, Brunei, Myanmar and Thailand). India is pushing – without much apparent process – for a services liberalization deal with the ASEAN countries.

last update: May 2012
photo: La Via Campesina


ASEAN-India Trade in Goods Agreement negotiations held
The third meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) was held in New Delhi, with delegates from ASEAN countries participating. The meeting outlined focus areas for further negotiations, updated the work programme for the review and provided guidance to the sub-committees.
ASEAN delegation to visit India on 17 Feb for FTA review
The review will focus on the ASEAN Trade in Goods Agreement, which has been in place for over a decade, and will likely include more goods and services under non-tariff barriers.
India-Asean trade pact review: India pitches for tighter rules of origin
The ROO revision would be in line with the provisions in the trade agreements that are currently being negotiated, where extent of value addition in a product originating from the exporting country is different for each chapter or product.
India, Asean to conclude review of existing free-trade agreement by 2025
The FTA between India and the 10-nation bloc came into effect 13 years ago. Indian businesses have long been pushing for its review.
FTA talks: Treaty to figure prominently during UK’s high-level team visit
Issues pertaining to the proposed bilateral investment treaty being negotiated between India and the UK along with a free trade agreement will figure prominently during the visit of a high-level team from Britain to India.
India, Asean decision on review of free trade agreement in goods expected tomorrow
India has asked for the review of the agreement with an aim to eliminate barriers and misuse of the ASEAN India Trade in Goods Agreement, which came into effect on January 1, 2010.
India-ASEAN trade deal ill conceived: Goyal
India-ASEAN trade deal signed under the UPA era is one of the most ill-conceived deals, commerce minister Piyush Goyal said at an industry event.
India pushes for Asean FTA update on trade gap
India has initiated talks with the Association of Southeast Asian Nations (Asean) to address concerns over the rules of origin and trade imbalance.
Kerala: Rubber farmers hold day-night protest demanding MSP for rubber, withdrawal of rubber bill
The Kerala Karshaka Sangham held a massive march and day-night protest on May 25 and 26 on various demands of the rubber farmers, including withdrawing from the Free Trade Agreement (FTA) India - ASEAN.
India, Vietnam to begin talks on trade agreement
A joint Indo-Vietnamese working group will be formed in the coming months to examine the feasibility of a trade pact.