 "Piyush Goyal calls for urgent review of India’s FTA with ASEAN to protect domestic industries and ensure balanced trade.")
India’s Commerce and Industry Minister Piyush Goyal has stressed the need to address the concerns of domestic industries affected by the existing free trade agreement (FTA) with the 10-nation ASEAN bloc. During a review meeting in Laos, he highlighted inequities in tariff liberalization and emphasized the urgency of upgrading the India-ASEAN Free Trade Agreement in Goods (AITIGA). The ministers from ASEAN countries recognized the importance of making the agreement more beneficial and user-friendly. India aims for a review to eliminate trade barriers and ensure sustainable trade. The next round of negotiations is scheduled for November, following a commitment to conclude the review by 2025. Goyal also discussed further trade collaborations during a bilateral meeting with Swiss officials.
India is pushing for improvements to its free trade agreement (FTA) with the ASEAN nations as concerns rise over its impact on local industries. During a recent meeting in Laos, Commerce and Industry Minister Piyush Goyal highlighted the urgent need to address issues arising from the current agreement, which was signed in 2009 and has led to imbalances in trade.
Goyal emphasized the importance of fixing inequitable tariff liberalization under the FTA. He pointed out that Indian industries have been suffering due to the existing terms of the agreement. The minister also conveyed India’s ongoing commitment to integrating with other economies and the necessity of upgrading the India-ASEAN trade pact.
The meeting included economic ministers from all 10 ASEAN countries, who collectively acknowledged the importance of achieving a mutually beneficial outcome from the review. There are plans to make the agreement more user-friendly and simpler for businesses, with intentions to complete the review by 2025.
India’s trade relationship with ASEAN is significant, accounting for approximately 11% of the country’s global trade. In the last fiscal year, India exported goods worth USD 41.2 billion to the region while imports totaled USD 80 billion. This highlights the critical need for a balanced approach to trade under the FTA.
Goyal also requested the establishment of joint committees to review separate agreements on services and investments, which were signed in 2014. As the review talks progress, India’s goal is to eliminate trade barriers and ensure fair practices are upheld.
The next round of negotiations concerning the FTA will take place in November. As India continues to strengthen its economic ties with ASEAN, it remains focused on creating a fair and sustainable trade environment for its domestic industries.
Tags: India, ASEAN, Piyush Goyal, Free Trade Agreement, Trade Negotiations, Domestic Industries, Economic Growth
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What is the India-Asean FTA?
The India-Asean FTA is a free trade agreement that aims to promote trade and investment between India and the countries in the ASEAN group, which includes nations in Southeast Asia. -
Why are local industries concerned about the FTA talks?
Local industries are worried that cheaper imports from ASEAN countries might hurt their businesses and jobs, making it difficult for them to compete. -
What does Goyal want to address in the talks?
Goyal wants to make sure that the needs and concerns of local industries are considered in the FTA discussions to protect jobs and support business growth in India. -
How can local industries express their concerns?
Local industries can share their concerns through industry associations, government forums, and public consultations organized by trade officials. - What is the benefit of the FTA for India?
The FTA can help increase trade between India and ASEAN countries, open up new markets for Indian products, and attract investments, which can boost the economy.
