ASEAN-INDIA FTA (Syllabus: GS Paper 2 – IR)

Context: The 4th Joint Committee recently convened in Putrajaya, Malaysia to review the ASEAN-India Trade in Goods Agreement (AITIGA).

ASEAN-India Trade in Goods Agreement (AITIGA)

• About: India and ASEAN (Association of Southeast Asian Nations) have a Free Trade Agreement (FTA) known as the ASEAN-India Trade in Goods Agreement (AITIGA). 
• Background: The ASEAN-India Trade in Goods Agreement (AITIGA) was signed in 2009 and came into effect in 2010. 
• Objective: The primary aim of the agreement is to enhance trade and economic cooperation between India and the ASEAN member states.
• Scope: The agreement covers various aspects related to trade in goods, including tariffs, rules of origin, standards, technical regulations, and conformity assessment procedures.
• Formation of Sub-committees: Eight Sub-committees have been constituted under the AITIGA Joint Committee.

o These sub-committees focus on different policy areas related to the Agreement.

• 3rd Joint Committee meeting: Delhi, India
• 5th Joint Committee meeting:  Jakarta, Indonesia.

ASEAN

• Established: In 1967, by the Bangkok Declaration.
• Members: Indonesia, Singapore, Philippines, Malaysia, Brunei, Thailand, Cambodia, Lao PDR, Myanmar, and Vietnam.
• Objective: It promotes inter-governmental cooperation and facilitates economic, political, security, military, educational, and socio-cultural integration between its members and countries in the Asia-Pacific.
• Major Partner: ASEAN is one of the major trade partners of India with a share of 11% in India’s global trade. The bilateral trade stood at USD 122.67 Bn during 2023-24.
• ASEAN Free Trade Area (AFTA): It means the ASEAN-India Free Trade Area under the Framework Agreement on Comprehensive Economic Cooperation between the Republic of India and the Association of Southeast Asian Nations.