Are India and ASEAN making progress on the review of their goods free trade agreement?
With trade tensions simmering globally, India and the Association of Southeast Asian Nations (ASEAN) are busy assessing the progress of talks on reviewing their goods free trade agreement (FTA). The move aims to boost trade between the two economic blocks.
What is the Goods FTA?
The goods FTA between India and ASEAN was signed in 2009 to remove tariffs on over 4,000 products, making it easier for businesses to trade with each other. The agreement has helped increase bilateral trade, with ASEAN being one of India’s largest trading partners. However, with the changing global trade landscape, the two economic blocks have agreed to review the FTA to make it more relevant and beneficial for businesses.
India’s Commerce and Industry Minister Piyush Goyal recently held a meeting with his ASEAN counterparts to discuss the progress of talks on reviewing the goods FTA. The meeting aimed to strengthen economic ties between the two regions and explore new areas of cooperation.
According to sources, the talks have made significant progress, with both sides agreeing on several key issues. The review of the FTA is expected to cover areas such as customs procedures, rules of origin, and sanitary and phyto-sanitary measures. The agreement will also aim to facilitate the movement of natural persons, including business travelers, between the two regions.
Benefits for Indian Businesses
The review of the goods FTA is expected to bring several benefits for Indian businesses. With the agreement in place, Indian companies will have easier access to the ASEAN market, which is home to over 640 million consumers. The FTA will also help Indian businesses compete more effectively with other countries in the region.
Additionally, the agreement will help Indian businesses take advantage of the ASEAN’s growing e-commerce market. The region’s e-commerce market is expected to reach $200 billion by 2025, providing a significant opportunity for Indian businesses to expand their presence.
What’s Next?
The review of the goods FTA is expected to be completed by the end of the year, with both sides aiming to finalize the agreement by then. The implementation of the agreement will depend on the approval of the Indian Parliament and the ASEAN member states.
In conclusion, the review of the goods FTA between India and ASEAN is a significant development that will boost trade between the two economic blocks. With the agreement in place, Indian businesses will have easier access to the ASEAN market, providing a significant opportunity for growth and development.
As the global trade landscape continues to change, the review of the goods FTA will help India and ASEAN stay competitive and adapt to the new realities of global trade. The agreement will also help strengthen economic ties between the two regions, promoting mutual understanding and cooperation.
With the review of the goods FTA on track, Indian businesses can look forward to new opportunities and challenges in the ASEAN market. As the two economic blocks move forward, it’s essential for businesses to stay informed and adapt to the changing trade landscape.