India, Asean trade agreement review faces delays
Subscribe to enjoy similar stories. The planned makeover of India's 14-year-old goods trade pact with Asean may take longer than expected as members of New Delhi's fourth largest trading partner press to negotiate tariffs individually, two people aware of the development said. The review, which was expected to be finalized at next month's Jakarta meeting of India and the Association of South East Asian Nations, has stalled since India's offer of a unified duty structure does not find favour among Asean members, two people aware of the development said.
"This shift in Asean's approach comes in response to India's proposal for a unified tariff schedule for all member states—a suggestion that has met with resistance from several countries within the bloc," one of the two people cited above said on the condition of anonymity. While the trade agreement has been instrumental in boosting regional economic ties, differing priorities and approaches between India and Asean members could prolong the review, leaving the future of the pact uncertain. The Asean Trade in Goods Agreement (ATIGA) was signed in 2009 and implemented a year later.
Following repeated demands from members, a review was agreed and its scope finalized in September 2022, leading to discussions that began in May 2023. The review aims to enhance the agreement's trade facilitation measures and maximize benefits for businesses across the region. Also read | India’s trade braces for an action-packed 2025 "India, on its part, is keen to revisit tariff concessions granted under ATIGA, particularly those favouring Vietnam.
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