ASEAN-India Trade in Goods Agreement (AITGA):

• The AITGA, signed in 2009 and effective in 2010, aims to reduce tariffs and non-tariff barriers on goods between ASEAN and India, covering sectors like agriculture, textiles, electronics, and machinery.
• AITGA is an important component of the ASEAN-India Free Trade Area (AIFTA), which aims to create a single market for goods and services among ASEAN and India.

Major Concern: Growing Trade Deficit

• Since the ASEAN-India Trade in Goods Agreement (AITGA), India has been facing a growing trade deficit.
• The trade deficit means India is importing more than it is exporting. In 2022-23, India imported goods worth US$87.57 billion, while it exported US$44 billion.
• In 2022-23, ASEAN made up 11.3% of India’s global trade. This deficit has grown a lot this year.

Because of this, there’s a need to urgently review and change the current trade setup between ASEAN and India.

Key Areas of Negotiation

• Rules of Origin (ROO): Modifications in ROO are planned to increase market access for Indian products and prevent the rerouting of goods, particularly from China, through ASEAN countries.
• Trade Remedies: A new chapter on trade remedies will aim to protect domestic industries from unfair trade practices and import surges.
• Exclusion of New Areas: The agreement will not expand to cover additional areas like labour, environment, MSMEs, or gender to avoid complicating the pact.

• Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
• East Timor (Timor-Leste) applied for membership in 2011 but is not yet a member.

• Accelerate economic growth, social progress, and cultural development.
• Promote regional peace and stability based on the rule of law and the UN charter.
• Establish an ASEAN community comprising three pillars: ASEAN security, economic, and socio-cultural.

• Launched in 2008 to create a legal entity and establish a single free-trade area for the region.
• ASEAN Intergovernmental Commission on Human Rights (AICHR) was established in 2009.
• Adopted the ASEAN Human Rights Declaration in 2012.

• ASEAN Plus Three initiated integration efforts with East Asian countries (China, Japan, and South Korea).
• Expanded to the East Asia Summit (EAS) including ASEAN Plus Three, India, Australia, and New Zealand.

• A key pillar of India’s foreign policy and the foundation of Act East Policy.
• India has a separate Mission to ASEAN and the East Asia Summit (EAS) in Jakarta.
• ASEAN is India’s fourth-largest trading partner.

PYQ:

[2018] Consider the following countries:

1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5

(b) 3, 4, 5 and 6

(c) 1, 3, 4 and 5

(d) 2, 3, 4 and 6