India’s Commerce and Industry Minister Piyush Goyal held a virtual meeting with Malaysia’s Minister of Investment, Trade and Industry T Zafrul Aziz to discuss the ongoing review of the ASEAN India Trade of Goods Agreement (AITIGA) and associated challenges. Malaysia is India’s permanent coordinator from ASEAN on economic matters. The Ministers also discussed furthering discussions on the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA).On the India-ASEAN Free Trade Agreement (FTA) under review, sources indicated last month that India opened 71% of its tariff lines, whereas Indonesia opened only 41%, Vietnam opened 66.5%, and Thailand opened 67% of its tariff lines despite India having a lower per capita income.
With nine rounds of renegotiation already completed 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 kept in mind 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: Trump tariffs: 50% on copper, 200% on pharmaceuticals – How it may impact IndiaEarlier in March, too, both countries discussed the ongoing review of ASEAN-India Trade in Goods Agreement (AITIGA), agreeing to speed up the AITIGA review for a conclusion within 2025 itself. The trading bloc also comprises of Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, and Vietnam.Stating that the government has merely echoed the Indian industry’s anguish over the ASEAN FTA during the renegotiation and review process, sources questioned why the UPA regime had reduced duties on Chinese imports. Sources pointed out that subsidised goods from a third country were being dumped in India until an anti-dumping duty was imposed. They noted that India acted against the dumping of steel imports through a Safeguard duty, as the ‘melt-and-pour’ clause had not been included in the FTA with the ASEAN bloc.India 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: India set to seek Cabinet nod for ₹32,000-35,000 crore fund to reimburse OMCs for LPG losses(Edited by : Asmita Pant)
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