Next Round of India-ASEAN Trade Agreement Review Talks In February
The next round of review talks for the India-ASEAN Free Trade Agreement (FTA) in goods, specifically the ASEAN India Trade in Goods Agreement (AITIGA), is scheduled for February 2025 in Jakarta, Indonesia. This announcement was made by the Indian commerce ministry following the conclusion of the fourth round of negotiations earlier this month.
The meeting will take place in February 2025, at Jakarta, Indonesia.
The review aims to enhance trade with the ASEAN region sustainably and address long-standing demands from Indian businesses for a reassessment of the agreement to eliminate trade barriers and misuse of the pact.
The AITIGA Joint Committee comprises eight sub-committees that will negotiate various aspects, including market access, rules of origin, customs procedures, and trade remedies.
ASEAN is a significant trading partner for India, accounting for about 11% of India's global trade. Bilateral trade reached USD 121 billion in 2023-24, showing a growth of 5.2% during the April-October period of this year.
The upcoming meeting represents a critical step in strengthening economic ties between India and ASEAN member countries.
The upcoming review talks for the India-ASEAN Free Trade Agreement (AITIGA) in February 2025 aim to achieve several key objectives:
The review seeks to simplify and operationalize the agreement, making it more user-friendly for businesses. This includes introducing easier rules of origin and reducing documentation requirements, which can facilitate smoother trade operations between India and ASEAN countries.
Indian businesses have long called for a review to eliminate barriers and address issues related to the misuse of the trade pact. The review is expected to focus on creating a more balanced trade environment by addressing these concerns.
The discussions will explore ways to promote resilient supply chains and enhance cooperation through initiatives like a Single Window platform, which can streamline customs processes and improve overall trade efficiency.
While the primary focus may not be on increasing market access commitments, there is an underlying expectation that the review will consider how to make trade benefits more equitable between India and ASEAN nations, given the current imbalances in trade flows.
The review will also address legal frameworks and institutional mechanisms to ensure effective implementation of the agreement, which includes eight sub-committees focusing on various aspects such as customs procedures, technical regulations, and trade remedies.
These objectives aim to bolster India's trade relations with ASEAN, which is a crucial partner, accounting for approximately 11% of India's global trade.
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