(Image source from: asean.usmission.gov)
The Association of South East Asian Nations (Asean) is believed to soon conclude the free trade agreement (FTA) review with India. With this review, their main aim is to balance China in the Indo-Pacific.
This specific grouping is going to help India gain an early conclusion of the review of the Asean-India FTA to further propel better momentum in the involved partnership, as mentioned by a senior Asean diplomat in an interview with Economic Times.
Prime Minister Narendra Modi addresses 10 esteemed and dignified Asean leaders on November 03, 2019 and was open to the decision of taking a relook at the free trade agreement between India and the remaining of the 10-member groups present in the Asean community.
It was just last month that India and Asean came together to take a better look and understanding into the review of the free trade agreement in the good to help make the trade affair user friendly, simple and trade facilitative.
Following India’s rampant decision to stay out of the RCEP, some of the Asean nations including Thailand, are keen for early conclusion of the salient FTA review.
India and Asean also signed a Framework Agreement on Comprehensive Economic Cooperation to establish an Asean-India Regional Trade and Investment Area in 2003. This is expected to provide with a better basis in the subsequent FTAs covering goods, services as well as investments. In addition to that, the Asean-India Trade in Goods Agreement (AITIGA) was again signed in 2009 following the confirmation issued from both the sides.
Prime Minister Modi said that he is welcome to the decision of re-examining the Indian-Asean FTA. According to him, he believes that the same will help in enhancing the economic links stronger as well as making the trade relations a lot stronger.
The bilateral results from the both end is expected to increase from $73.6 billion in 2017 to $80.8 billion in 2018.
By Somapika Dutta