On the India-ASEAN Free Trade Agreement (FTA) under review, sources have indicated that India had opened 71% of its tariff lines, while Indonesia had opened only 41%, Vietnam had opened 66.5%, and Thailand had opened 67% of its tariff lines despite India having a lower per capita income.With nine rounds of renegotiation already having taken place for the ASEAN FTA review, following the bloc’s commitment to renegotiate in November 2019, sources pointed out that all offensive and defensive interests of the industry are being taken into account for FTAs with complementary economies.
Assuring that future FTAs will factor in domestic interests of all stakeholders, sources said that none of the FTAs negotiated in the past decade have been criticised by MSMEs, domestic manufacturers or farmers.
Also Read: Piyush Goyal on top priorities for India-UK FTA: Ethical AI rules, early gains for startupsIn March this year, India and Malaysia discussed the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), agreeing to expedite the review for a conclusion by 2025. Malaysia is the ASEAN Chair for the year 2025. The trading bloc also comprises Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Stating that the government has only reflected the anguish of the Indian industry against ASEAN FTA, while renegotiating and reviewing the FTA, sources questioned why duties on Chinese imports were reduced by the UPA regime.Pointing out that subsidised goods from a third country were found to be dumped until India levied an anti-dumping duty, sources indicated that India cracked down on the dumping of steel imports via a safeguard duty as the “melt-and-pour” clause wasn’t put in the FTA with the ASEAN bloc.Also Read: India, EU accelerate FTA talks amid industry opposition to carbon levy: Govt sourcesIndia is looking for a country-wise review of the AITIGA (ASEAN-India Trade in Goods Agreement) to contain its rising trade deficit with the 10-nation bloc. While India’s exports to the Assocation of South-East Asian Nations (ASEAN) member countries have risen 65.23% from $26,628 million in FY 2010-11 to $44,000 million in FY 2022-23, imports from ASEAN countries to India have grown 186% from $30,608 million in FY 2010-11 to $87,577 million in FY 2022-23. Even in FY 2023-24, India’s imports from ASEAN countries were recorded at $66,551 million against total exports of $32,713 million to the bloc.In October 2024, Indian government sources had told CNBC-TV18 that bilateral positions of many ASEAN countries have changed since the implementation of the agreement in 2010, and some of them don’t reflect the same position anymore.Stating that the 10-nation bloc is not a common customs union but a grouping of countries at different stages of development, sources had added that India is trying to build flexibility in review while speaking to individual countries. There have been concerns raised by Indian industry over cheap imports from ASEAN countries impacting domestic industries in the steel and electronics sectors.Also Read: FTA with Switzerland, Norway, Iceland, Liechtenstein likely to come into effect by Sep 2025: Piyush Goyal
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