Why India, ASEAN are fast-tracking their trade deal review
What's the story
India and the Association of Southeast Asian Nations (ASEAN) have agreed to expedite talks for a review of their trade agreement. The move comes in light of the US imposing higher tariffs on Indian goods, creating uncertainty in global trade. The two sides intend to complete the review of the ASEAN-India Trade in Goods Agreement (AITIGA) by year-end.
Trade negotiations
AITIGA review talks
The decision to fast-track the AITIGA review comes after nine rounds of talks that didn't yield much progress. However, the 10th round from August 10-14 in New Delhi saw significant strides. The joint committee for the AITIGA review made headway, with both sides discussing ways to enhance trade between India and ASEAN countries.
Discussions
Non-tariff issues discussed
The talks also covered non-tariff issues and regulatory compliance between India and ASEAN. An official emphasized to Moneycontrol that this round of discussions was fruitful in determining the way forward. Everyone is concerned about uncertain global trade policies, but both ASEAN and India have realized the need to improve trade during this period, the official added.
Future
Next round of talks in Indonesia
The next round of talks for the India-ASEAN trade deal review will be held in Indonesia in October. The Free Trade Agreement, which came into effect in 2010, has been criticized by the Centre for not addressing the trade imbalance between India and ASEAN countries.