In News:

The 6th ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee and related meetings for discussions on the review of the AITIGA were held recently in Vanijya Bhawan, New Delhi.

Key Highlights:

Key Negotiation Areas

• 8 Sub-Committees under the AITIGA Joint Committee discussed:
  • Market access, rules of origin, SPS measures, standards and technical regulations.
  • Customs procedures, economic and technical cooperation, trade remedies, and legal and institutional provisions.
• 5 Sub-Committees met physically during this round of negotiations.

Progress in Discussions

• Textual Discussions: Sub-Committees made progress in discussions on various provisions.
• Tariff Negotiations: Initial steps towards initiating tariff negotiations were covered.

High-Level Meetings Leading to AITIGA Review

• 21st ASEAN-India Economic Ministers Meeting: Held in September 2024 in Vientiane, Laos.
• 21st ASEAN-India Summit: Held in October 2024 in Vientiane, Laos.

Both meetings urged the Joint Committee to expedite negotiations and aim for the conclusion of the review in 2025.

Bilateral Meetings

• ASEAN delegates held separate bilateral meetings with Thailand and Indonesia to discuss bilateral trade issues.
• Indian and ASEAN Chief Negotiators met to align on the ongoing issues and future steps.

India's Review Demands

• Request for Review: India sought a review of AITIGA (implemented in 2010), citing disproportionate trade benefits favoring ASEAN countries.
• India’s Objectives:
  • Enhanced Market Access: India pushed for ASEAN countries, especially Vietnam, to commit to greater market-opening for Indian goods.
  • Stricter Rules of Origin (ROO): India requested more stringent ROO provisions to prevent Chinese goods from entering India via ASEAN countries at preferential rates.

Trade Relationship and Economic Impact

• Bilateral Trade:
  • Total trade with ASEAN reached USD 121 billion in FY 2023-24.
  • Trade during April-October 2024 was USD 73 billion, marking a 5.2% growth.
• Trade Deficit: India’s trade deficit with ASEAN widened from USD 4.98 billion in FY 2010-11 to USD 38.4 billion in 2023-24.
• ASEAN accounts for 11% of India’s global trade.

Future Outlook

• The next meeting of the AITIGA Joint Committee is scheduled for February 2025 in Jakarta, Indonesia.
• The review process aims to further enhance sustainable trade between India and ASEAN countries.