ASEAN-India Trade in Goods Agreement (AITIGA)

November 25, 2024

The ASEAN-India Trade in Goods Agreement (AITIGA) joint committee convened to review the bilateral pact, which indicates a step forward in tariff negotiations. This meeting took place from November 15-22 in Delhi and officials from all ten ASEAN nations and India participated actively.

Subcommittees and Their Focus Areas

Eight subcommittees were established to address various aspects of the trade agreement. Their discussions included market access, rules of origin, and standards and technical regulations. They also covered customs procedures, economic cooperation, trade remedies, and legal issues. Progress was reported across all these areas.

Recent Meetings and Context

This round of negotiations followed two important meetings earlier in 2024. The 21st ASEAN-India Economic Ministers Meeting occurred in September. The 21st ASEAN-India Summit took place in October. Both events were hosted in Vientiane, Laos. Leaders urged the AITIGA Joint Committee to expedite negotiations. The goal is to complete the review process by 2025.

India’s Trade Position

India has been advocating for a review of the AITIGA, which has been in effect since 2010. The agreement has disproportionately benefited ASEAN countries. India’s exports to ASEAN rose from $25.62 billion in 2010-11 to $41.2 billion in 2023-24. In contrast, imports surged from $30.6 billion to $79.66 billion during the same period.

Key Objectives of India

India aims to reduce tariffs on 76.4% of traded goods. However, ASEAN countries have not made equal commitments. India seeks to encourage countries like Vietnam to increase their commitments. Stricter rules on product origin are also a priority. This is to prevent Chinese goods from entering India through ASEAN at lower tariffs.

India conducted separate discussions with Thailand and Indonesia. These meetings focused on specific trade issues. Chief negotiators from ASEAN countries held their own meetings to assess issues and determine future steps.

Important Facts for Exams:
AITIGA – The ASEAN-India Trade in Goods Agreement was implemented in 2010. It aims to reduce tariffs on 76.4% of traded goods. India seeks greater commitments from ASEAN nations.
Vientiane – Vientiane is the capital city of Laos. It hosted important ASEAN-India meetings in 2024. The 21st ASEAN-India Economic Ministers Meeting and Summit occurred there.
ASEAN – The Association of Southeast Asian Nations consists of ten member countries. It promotes political and economic cooperation. ASEAN is crucial for regional stability and economic growth.
Rules of Origin – Rules of origin determine the national source of a product. They are essential for trade agreements. Stricter rules can prevent circumvention of tariffs.

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