NEW DELHI, June 18 — The ASEAN India Business Council (AIBC) is urging for a review of the Association Of Southeast Asian Nations (ASEAN) – India Free Trade Agreement (AIFTA).
“AIFTA was structured 10 years ago, and we are hoping it can be reviewed to enhance trade between ASEAN and India,‘’ said AIBC co-chairman, Datuk Ramesh Kodammal to Bernama in New Delhi yesterday.
India hosted the Special ASEAN-India Foreign Ministers Meeting in the country’s capital city on June 16 to mark the 30th anniversary of its ties and 10-year strategic partnership with the 10-member country pact.
During the 12th Delhi Dialogue held on June 16-17, Ramesh pointed out that the AIFTA review was still pending even though discussions had been held several times.
The global geopolitical situation has also changed, with inflation and commodity prices rising.
“As such, I think it is very important for us to review the AIFTA and take this step forward and enhance trade between ASEAN and India,” he said during the plenary discussion session on ‘Facilitating Trade, Investment and Value Chains in the Post Pandemic Recovery and Rebuilding’.
The Framework Agreement on Comprehensive Economic Cooperation between ASEAN and India was signed in October 2003 and served as a legal basis to conclude further agreements, including Trade in Goods Agreement, Trade in Services Agreement, and Investment Agreement that form the AIFTA.
The ASEAN-India Trade in Goods Agreement was signed and came into force on Jan 1, 2010.
Under the agreement, ASEAN member nations and India agreed to open their respective markets by progressively reducing and eliminating duties on 76.4 per cent coverage of goods.
