ASEAN, India agree to cut tariffs sooner<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Association of Southeast Asian Nations (ASEAN) and India have
\nagreed to speed up an import tariff reduction process for certain
\nbusiness sectors even before a planned free trade area (FTA)
\nbetween the two is implemented, a top official at the Ministry of
\nIndustry and Trade said.<\/p>\n
The agreement for the "early harvest package" was reached
\nduring a top officials' meeting in India last week.<\/p>\n
Eliver Radjagoekgoek, director of regional cooperation at the
\nministry said that each ASEAN member country had to submit
\nproposal of products to be included in the early harvest package
\nby next month.<\/p>\n
"We (Indonesia) are now selecting the products, we may include
\nagriculture products such as crude palm oil (CPO) and coffee,"
\nEliver said on Tuesday.<\/p>\n
He said that India, the world's second most populous country
\nmight lower tariffs on its technology products.<\/p>\n
However, it is not clear yet when the new tariffs would go
\ninto effect.<\/p>\n
"But this is a sign of goodwill in ASEAN-India trade talks,"
\nhe said.<\/p>\n
In 2002, economic ministers from ASEAN and India agreed to set
\nup a regional FTA within 10 years.<\/p>\n
Total ASEAN-India trade value was US$9.88 billion in 2001, up
\n30 percent from $7.6 billion in 2000.<\/p>\n
Eliver said that the implementation of a free market with
\nIndia would create opportunities for Indonesia to boost exports
\nto the country.<\/p>\n
Trade value between Indonesia and India reached $1.4 billion
\nin 2000, higher than the previous year of $1 billion. Indonesia
\nexports included CPO and natural gas to India.<\/p>\n
The 10 ASEAN members are Indonesia, Singapore, Malaysia.
\nThailand, Brunei, the Philippine, Laos, Cambodia, Myanmar and
\nVietnam.<\/p>\n
The six founding ASEAN members signed the ASEAN Free Trade
\nArea (AFTA) pact in 1993. AFTA came into full effect for those
\nsix on Jan. 2003 in which the import tariffs on a majority of
\nproducts was now between zero percent to five percent.<\/p>\n
The grouping has also signed a similar free trade deal with
\nChina, in which the early harvest package, mainly in agricultural
\nproducts will be implemented in Jan. 2004, and the FTA
\nimplementation would start in 2005.<\/p>\n
With Japan, ASEAN signed a declaration on a comprehensive
\neconomic partnership which contains elements for an FTA in 10
\nyears' time.<\/p>\n
ASEAN is now looking to ink free trade deals with the European
\nUnion in the near future.<\/p>\n
Each of ASEAN members is also seeking opportunities to make
\nfree trade deals with the United States.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-india-agree-to-cut-tariffs-sooner-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}