ASEAN, India agree on FTA; to create EU-like market

Fri, Aug 8 09:42 PM

Kuala Lumpur/New Delhi, Aug 8 (PTI) India and South Asian trading block ASEAN have reached a free trade deal in goods, ending three years of talks aimed at creating a European Union-style single market, only much larger in terms of population - over 1.5 billion. The two trading partners are expected to sign an agreement in December in New Delhi marking the conclusion of the deal.

"All modalities for the FTA are concluded," India's Commerce Secretary Gopal Pillai told PTI in New Delhi. Pillai, who returned from talks in Brunei yesterday, said trade ministers would meet around August 28 for the Asean Economic Ministers and India Conference where they would formally announce the FTA. The Commerce Secretary had met Asean's Senior Economic Officials (SEOM) during the Asean-India Consultations at the 4th Meeting of the 39th SEOM in Brunei.

The last-mile talks held yesterday managed to resolve several contentious issues that had been holding back the two from reaching an agreement, said Surin Pitsuwan, Secretary General of the 10-member ASEAN. "I have been informed that ASEAN and India have concluded talks on FTA. This will open tremendous synergies between India's one billion population and our 567 million people," he was quoted as saying by Bernama on the sidelines of the Asean Energy Ministers' Meeting. Surin said he was happy the deadlock over the issue of agriculture products from Asean members, which had hindered the success of the talks, had been finally solved.

Trade between India and Asean reached nearly USD 20 billion last year and is expected to grow to USD 30 billion by 2010 and create an Asean Economic Community by 2015. PTI.

RECOMMEND THIS STORY