Association of South East Asian Nations (ASEAN)
and
India Free Trade Agreement (FTA) negotiations.
- India’s engagement with the Association of South East Asian Nations
(ASEAN) started with its "Look East Policy" in the year 1991. ASEAN has a
membership of 10 countries namely Brunei Darussalam, Cambodia, Indonesia,
Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
India became a Sectoral Dialogue Partner of ASEAN in 1992 and Full Dialogue
Partner in 1996. In November 2001, the ASEAN-India relationship was upgraded
to the summit level.
- The 1st ASEAN Economic Ministers (AEM) – India Consultations were held
on 15th September 2002 in Brunei Darussalam where the Ministers, after
discussing the Joint Study Report decided to establish an ASEAN-India
Economic Linkages Task Force (AIELTF). The AIELTF was asked to prepare a
draft Framework Agreement to enhance the ASEAN-India trade and economic
cooperation before the 2nd AEM – India Consultations. Subsequently, at the
First ASEAN-India Summit held on 5 November 2002 in Phnom Penh, Cambodia,
the erstwhile Prime Minister of India made the following major
announcements:-
- India will extend special & differential trade treatment to ASEAN
countries, based on their levels of development to improve their market
access to India;
- FTA within 10 years timeframe;
- A Framework Agreement on Comprehensive Economic Cooperation between the
Association of South East Asian Nations (ASEAN) and India was signed by the
Prime Minster of India and the Heads of Nation/Governments of ASEAN members
during the Second ASEAN – India Summit on 8th October 2003 in Bali,
Indonesia.
- The key elements of the Framework Agreement on Comprehensive Economic
Cooperation between the Association of South East Asian Nations (ASEAN) and
India cover FTA in Goods, Services and Investment, as well as Areas of
Economic Cooperation. The Agreement also provided for an Early Harvest
Programme (EHP) which covers areas of Economic Cooperation and a common list
of items for exchange of tariff concessions as a confidence building
measure. Due to difference of opinion on Rules of Origin, the EHP, agreed
under the Framework Agreement, on Goods could not be implemented.
Current Status
- The ASEAN-India Trade Negotiating Committee (TNC) was constituted and 23
meetings have been held so far. India and the ASEAN have signed the
following Agreements on 13th August 2009:-
- Trade in Goods Agreement along with its annexes.
- Agreement on Dispute Settlement Mechanism.
- Protocol to Amend the Framework Agreement.
- Understanding on Article 4 of the Agreement on Trade in Goods Agreement.
The Agreements have come into force on 1st January 2010 in respect of India
and Malaysia, Singapore, Thailand. In the case of other ASEAN countries, the
Agreements will come into force after they complete their internal requirements.
Negotiations in Trade in Services and Investment are underway and are targeted
to be concluded by August 2010.