ASEAN, India Conclude Free Trade Deal in Goods

The Association of Southeast Asian Nations (ASEAN) has concluded a free trade deal in goods with India, the bloc's seventh largest trading partner, after five years of negotiations, ministers said in Singapore on Thursday.

At a news conference on Day Three of the ASEAN economic ministers meeting, Singapore's Trade and Industry Minister Lim Hng Kiang and India's Commerce and Industry Minister Kamal Nath announced the deal, which is expected to be signed at the ASEAN's Bangkok Summit in December.

Nath expressed deep satisfaction at conclusion of the deal, despite the difficult issues in the negotiations, saying it is an important milestone for our region.

ASEAN-India trade has reached 30 billion U.S. dollars and both sites have set a target of 50 billion U.S. dollars by 2010. ASEAN' s exports to India during 2005-2007 grew at an annual rate of 31 percent, the fastest among ASEAN's exports to major trading partners.

ASEAN-India trade accounts for only 2 percent of ASEAN's global trade, so the potential of bilateral economic cooperation... is profound, said Nath.

The trade-in-goods agreement is the first step towards the establishment of free trade area (FTA) between ASEAN's Brunei, Indonesia, Malaysia, Singapore, Thailand and India by 2011 and with the remaining five ASEAN countries by 2016.

The other two steps -- negotiations on services and investment - - will begin as soon as possible when the ASEAN countries are ready and are expected to be completed by 2009, said Minister Nath.

Under the goods FTA, ASEAN companies will benefit from enhanced market access in India in terms of reduction in tariffs and reduced barriers of trade, including with the cumulative rules of origin, according to a joint statement.

It also provides a special track for tariff reduction for five products which are the key exports of some ASEAN members, including crude and refined palm oil, coffee, pepper and tea.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar the Philippines, Singapore, Thailand and Vietnam.

Source: CRIEnglish