Asean, India likely to revaluate duty cuts, non-tariff measures
India and the Association of Southeast Asian Nations (Asean) are likely to revaluate duty cuts, non-tariff measures, safeguard and anti-dumping duties as part of the review of their existing free trade agreement.
While the scope of the review of the Asean-India Trade in Goods Agreement (AITIGA) would be decided at the leaders' meeting next month, sources said that the two sides have agreed on exclusion lists, origin rules and technical barriers to trade to be part of the review.
New Delhi also sought an evaluation of the services agreement but the grouping is not on board for the same, people familiar with the matter said.
The Asean-India Trade in Services Agreement was signed in November 2014 and contains provisions on transparency, domestic regulations, recognition, market access, national treatment and dispute settlement.
«India has been asking for a review for more than five years. Asean has agreed for some provisions and there are concerns on others,» said an official.
India has asked for a review of the agreement to eliminate barriers and misuse of the trade pact.
Concerns have also been raised about routing of goods from third countries in India through Asean members by taking the duty advantages of the agreement. Trade facilitation, customs cooperation, and economic and technical cooperation are likely to be part of the pact review.
There are concerns that the 10-member bloc might seek access for its dairy in the review of the trade pact.
Officials said India's asks are similar to renegotiation of the pact, something which Asean doesn't agree with.
The review is crucial as India's trade deficit with the bloc widened to $43.57 billion in FY23 from $25.76 billion in 2021-22 and $5 billion in 2010-11.
