ASEAN-India FTA set to kick off in January<\/p>\n
Zakki P. Hakim The Jakarta Post, Jakarta<\/p>\n
Members of the Association of Southeast Asian Nations (ASEAN)
\nagreed on Sunday to start implementing a planned free trade area
\n(FTA) with economic powerhouse India in January next year.<\/p>\n
Under the plan, tariffs on 105 products will be gradually cut
\nunder an early harvest program (EHP) with the prospect of zero
\ntariffs by 2007. The products include unprocessed agriculture
\nproducts, chemical and manufactured products.<\/p>\n
Leaders of the regional grouping are expected to approve the
\nplan at a summit in November this year in Vientiane, Laos.<\/p>\n
The decision was taken during the last day of a three-day
\nASEAN Economic Ministers (AEM) meeting here, where trade and
\neconomic ministers from the 10 member countries of the regional
\ngrouping met with their counterparts from the region's key
\ntrading partners to push FTA plans and boost economic
\ncooperation.<\/p>\n
It was agreed during a leaders summit in Bali last year that
\nthe more developed countries of ASEAN would set up a fully
\nfledged FTA with India by 2011, with the new members of the
\ngrouping following by 2016.<\/p>\n
ASEAN founding nations are Brunei, Indonesia, Malaysia, the
\nPhilippines, Singapore and Thailand, while Cambodia, Myanmar,
\nLaos and Vietnam joined later.<\/p>\n
Trade between the ASEAN countries and India reached US$8.07
\nbillion last year, a slight decline from $8.42 billion the
\nprevious year.<\/p>\n
Indian Minister of Commerce and Industry Kamal Nath told a
\npress conference that the implementation of the EHP should have
\nstarted in November, but due to some \"unsorted things,\" the
\nschedule had to be delayed.<\/p>\n
\"But now we are on track to complete these (steps),\" Nath
\nsaid.<\/p>\n
But the two sides have yet to resolve disagreement on what are
\ntermed the rules of origin affecting the 105 products. It is
\nhoped that an agreement can be reached before the leaders' summit
\ntakes place.<\/p>\n
The ministers on both sides have also agreed to prioritize
\nseven areas of economic cooperation for immediate implementation,
\nincluding collaboration in information-technology (IT),
\noutsourcing, and investment in information and communication
\ntechnology (ICT) parks.<\/p>\n
Elsewhere, ASEAN also agreed to start FTA talks with Australia
\nand New Zealand next year, with the hope of concluding them in
\n2007.<\/p>\n
The decision was taken during a meeting with Australian
\nMinister of Trade Mark Vaile and New Zealand Minister for Trade
\nNegotiations Jim Sutton.<\/p>\n
ASEAN exports to Australia and New Zealand stood at $18.85
\nbillion last year, up 77 percent from $10.67 billion the year
\nbefore.<\/p>\n
\"The economic integration would double approximately the size
\nof the effective joint market,\" Sutton said.<\/p>\n
\"The integration is going to drive political stability and
\nsecurity (in the region),\" he added.<\/p>\n
The deals followed similar agreements on Saturday to push for
\nFTAs with Japan, South Korea and China.<\/p>\n
Also on Sunday, the ASEAN ministers met with the European
\nUnion Trade Commissioner Pascal Lamy, who hailed the regional
\ngrouping's plan to integrate its economies and become like an EU-
\nstyle single market and production base.<\/p>\n
Lamy told a press conference that the economic integration via
\nliberalization drive would provide a major boost in attracting
\nglobal foreign direct investment.<\/p>\n
\"... We believe that this is a strong incentive for the
\ndevelopment of investment and trade in the region,\" Lamy said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-india-fta-set-to-kick-off-in-january-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}