Indian senior officials, along with representatives from the 10-member ASEAN bloc, are scheduled to convene in Jakarta, Indonesia in July for discussions aimed at evaluating the current free trade agreement, as announced in an official statement released on Sunday.
The final session of the three-day discussions came to an end on May 9 in Putrajaya, Malaysia.
The commerce ministry announced that discussions to revise the ASEAN-India Trade in Goods Agreement (AITIGA) commenced in May 2023 to enhance its trade-facilitating aspects and benefits for businesses in the region.
A joint committee, responsible for the review, has convened four times. It has established the terms of reference and the negotiation framework during its initial two meetings. The third meeting, held on February 18-19, marked the commencement of the review talks.
According to a statement, the fourth Joint Committee meeting for the AITIGA review occurred in Putrajaya, Malaysia, from May 7-9. Rajesh Agrawal, Additional Secretary in the Department of Commerce, and Mastura Ahmad Mustafa, Deputy Secretary General (Trade) from the Ministry of Investment, Trade and Industry, Malaysia, co-chaired the committee. India and the 10-member ASEAN bloc aim to finalize the discussions by 2025.
Delegates from India and all 10 ASEAN nations participated in the discussions. The ministry reported that eight sub-committees have been formed to address various policy aspects of the agreement in the review process, and five of these have commenced their deliberations.
These committees are currently engaged in negotiations regarding various matters such as national treatment and market access, rules of origin, standards, technical regulations, conformity assessment procedures, and legal and institutional aspects. ASEAN, which stands for the Association of Southeast Asian Nations, holds a significant position as one of the country’s major trade partners, contributing to approximately 11 percent of India’s global trade. In the fiscal year 2023-24, the bilateral trade between the two entities amounted to USD 122.67 billion.
According to the statement, the enhancement of AITIGA will enhance bilateral trade further. The next meeting, the fifth joint committee meeting, is scheduled for July 29-31, 2024, in Jakarta, Indonesia. Indian businesses have long advocated for the review of AITIGA.
India has requested a review of the agreement to address barriers and prevent misuse of the trade pact. The ASEAN members comprise Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Typically, such review processes cover implementation issues, rules of origin, verification processes, customs procedures, further trade liberalization, and the exchange of trade data. Exports to ASEAN nations increased from USD 37.47 billion in FY2019 to USD 41.21 billion in FY2024, marking a 9.96% rise. Conversely, imports from the bloc surged by 34.30% from USD 59.32 billion to USD 79.67 billion.
