It is not only that the Commerce and Industry Ministry of India has by now completed the negotiation process for foreign trade agreement with the Association of South East Asian Nations (ASEAN), but has also finalised all necessary ground work to enter into FTA with South Korean Government probably in the early part of October, 2009. Apart from the impending FTA with 10-nation ASEAN countries on trade in goods during India’s seventh summit with them in Thailand, to be followed by the same with South Korea, there is also the possibility of opening trade relations with the larger 16-nation East-Asian group comprising India, Australia, New Zealand, Japan, China and South Korea among others. India’s External Affairs Minister, SM Krishna who was on a three-day visit to Thailand during 22-24 July, 2009 to participate in the 16th ASEAN Regional Forum (ARF) at the Thai city of Phuket on 23 July, witnessing Asia’s biggest annual security gathering to discuss mainly the issues of terrorism, the North Korean nuclear development and the global financial crisis, did hold talks on the previous day with his counterparts from all the 16 countries of East Asian summit and underscored India’s keen interest for economic and strategic engagement with economically vibrant East Asian region that produces an annual output quantum of the order of $ 1.1 trillion worth and represents more than half of the planet’s human race. While giving a fresh momentum to India’s much talked-about Look-East Policy through disclosure of its preparedness for foreign trade agreements with Asian neighbours, SM Krishna reiterated that Indian people are committed to bringing their nation and the ASEAN closer to each other through exploring their synergies to realise full potential of relationship. It may be noted here that the FTA has the potential of multiplying manifold the India-ASEAN bilateral trade which currently accounts for $ 38 billion and that the finalisation of agreement-text on trade in goods is a major step forward in this direction.
Significantly, the free trade agreement with both the South-East Asian block and South Korea has been on 100-day agenda of the new United Progressive Alliance government to help restoring a sufficiently comfortable level of growth in our economy. It is also significant to note that the long-awaited FTA hit repeated road blocks over the tariff issue in negotiation period since June, 2006 whereupon India softened its stance by offering to reduce its negative list-items not subjected to duty cuts, but still the ASEAN nations insisted on further concession. Perhaps, it is the incidence of global financial melt-down and the ongoing recessionary slow down drying up developed countries’ export markets that have hastened the FTA process. Happily, with the trade agreement already finalised with BIMSTEC nations comprising Bangladesh, India, Sri Lanka, Thailand, Myanmar, Nepal and Bhutan, the whole of South-East Asia will expectedly be covered under trade relationship, and that is perhaps the required economic strategy of the hour. ASSAM TRIBUNE
Significantly, the free trade agreement with both the South-East Asian block and South Korea has been on 100-day agenda of the new United Progressive Alliance government to help restoring a sufficiently comfortable level of growth in our economy. It is also significant to note that the long-awaited FTA hit repeated road blocks over the tariff issue in negotiation period since June, 2006 whereupon India softened its stance by offering to reduce its negative list-items not subjected to duty cuts, but still the ASEAN nations insisted on further concession. Perhaps, it is the incidence of global financial melt-down and the ongoing recessionary slow down drying up developed countries’ export markets that have hastened the FTA process. Happily, with the trade agreement already finalised with BIMSTEC nations comprising Bangladesh, India, Sri Lanka, Thailand, Myanmar, Nepal and Bhutan, the whole of South-East Asia will expectedly be covered under trade relationship, and that is perhaps the required economic strategy of the hour. ASSAM TRIBUNE
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