Trade Growth Expected After Signing of Indian-Asean FTA
14 August 2009
Growth in goods trading between India and Asean is anticipated after the signing of the Indian-Asean Free Trade Agreement in Bangkok yesterday. The FTA will come into effect next year.
Import tariffs between Asean and India will be reduced to zero on 71 percent of trade in goods by 2013, and zero for another 9 percent by 2016.
Around 500 to 600 items on sensitive lists will have import duties lowered to 5 percent by 2016. A further five highly sensitive items such as palm oil, refined palm oil, tea, coffee, and pepper will have tariffs reduced from 70 percent to 45 percent by 2019.
Tariffs will remain unchanged for 489 items.
Trade in goods reached 47 billion USD last year, although the implementation of the FTA is expected to increase trade to 60 billion USD by 2016.
A proposal for liberalization of services should be more distinct in October and subsequently lead to an agreement. |