Targeting a two-way
trade of USD 100 billion by 2015, India and ASEAN will formally declare
conclusion of negotiations for their ambitious free trade agreement to
liberalise trade in services and investments, on December 20 coinciding
with their summit in New Delhi.
"We will definitely conclude it and then we are duty bound
to report to the heads of states and heads of the governments who shall
formally make the declaration on December 20," Commerce and Industry
Minister Anand Sharma said at a joint press conference with trade
ministers of key ASEAN countries.Currently, the trade between India and
Association of South East Asian Nations (ASEAN) stood at USD 80
billion."We are aiming that the trade between the two sides will touch
USD 100 billion by 2015," Sharma said. Cambodian Commerce Minister Cham
Prasidh expressed hope that the two-way commerce would cross USD 100
billion mark. After operationalising free trade agreement in goods in
August last year, both the sides engaged in widening the base of the
pact by including services and investments. However, the talks were
getting delayed due to differences in opening the sectors. To mark the
20th anniversary of dialogue-level partnership and the 10th anniversary
of Summit-level partnership with ASEAN, India is hosting the India-ASEAN
Commemorative Summit on the theme "India and ASEAN: Partners in
Progress and Prosperity" on December 20-21. Sharma said that all the
ministers have strongly supported the process of negotiations "so that
we can have an ambitious and balanced comprehensive economic agreement
which would be in place once we conclude the services and investment
chapter". He said that after conclusion of the talks, it may take an
year to fully implement the pact. Earlier, while speaking after the
inauguration of 2nd India-ASEAN business fair organised by Ficci, Sharma
said the negotiations for Regional Comprehensive Economic Partnership
(RCEP), a mega trade agreement comprising 16 countries of the region
including India and China, are expected to conclude by 2015. Besides,
the free trade pact with ASEAN, India is negotiating market opening pact
bilaterally with the members of the block. India has already
implemented FTA with Singapore and Malaysia and is negotiating with
Indonesia and Thailand in this regard. India is keen to conclude talks
on services as the sector contributes over 50 per cent in the country's
economic growth. When asked whether all the issues, particularly from
Philippines, hampering negotiations related with services have been
resolved, Prasidh said senior officials are meeting today to resolve all
the matters. "Tomorrow the ministers will endorse the recommendations
of the senior officials and we would submit it to the leaders," he
added. Philippines is a strong player in the global outsourcing. Its
BPO industry accounts for about 15 per cent of the global outsourcing
market and has been the fastest-growing segment of the countrys
economy. Talking about the bilateral free trade agreements, Srirat
Rastapana, Director General, Department of International Trade
Promotion, Thailand, said the ongoing talks for the market opening pact
is likely to conclude by next month. The two countries have already
abolished the duties on 82 items under an 'Early Harvest Scheme'
launched in 2004. EHS is the initial phase of the FTA, which is to be
upgraded into a full-fledged arrangement for reduction and elimination
of duties on about 90 per cent of goods traded between the countries.
The FTA will also cover opening up of trade in services and investment,
areas of interest to India. Speaking at the fair inauguration, all the
ASEAN (Association of Southeast Asian Nations) members invited Indian
companies to invest in their countries in areas like IT, healthcare,
food processing and infrastructure. Indonesian Trade Minister Gita
Irawan Wirjawan sought investments in sectors like IT and health care.
Similarly, Vietnamese Industry and Trade Minister Vu Huy Hoang sought
investments in areas like energy and infrastructure. Expressing his
Prime Minister's worry, Malaysian Minister in Prime Minister Department
Dato' G Palanivel said India is not giving infrastructure projects to
their firms. "My Prime Minister keeps on telling me that India is not
giving Malaysian companies infrastructure projects. It is buying a lot
of palm oil but they are not giving us the opportunity to participate in
the infrastructure work in India," he said adding that the Malaysian
Prime Minister is expected to raise the issue with his Indian
counterpart in the meeting on Wednesday. Myanmar Deputy Minister for
the Ministry of Commerce Pwint Sann talked about the Mekong-India
economic corridor, which proposes to link corridors in the peninsular,
and possibly the north-eastern, regions of India with the East Asian
region. On this Sharma said, "Thailand, Myanmar and India are working
closely on that. I hope it will be completed as early as possible. It
would also unleash the potential of entire north east region of India,
Covering about 8,000 km, it is something truly impressive". Further,
Sharma said although the two-way trade between India and ASEAN is
increasing by about 30 per cent, "still huge potential exists to boost
the commerce". "The numbers are well below the potential. We need to
take steps to boost trade and investment," he said. India is ASEAN's
seventh largest trading partner and sixth largest investor in the
10-member bloc. The two-way investments stood at about USD 75 billion
presently. He added that after the implementation of free trade pact in
services and investments, it would open market for about 1.8 billion
people. In the 2nd India-ASEAN business fair, about 265 companies from
ASEAN and India are showcasing products and services. "Over 200
companies from ASEAN are present in the fair. There will be B2B meetings
besides seminars. The move will help in increasing economic relations
among the nations," Ficci Secretary General Didar Singh said. Meanwhile
later speaking at the business fair and conclave, Minister of State for
Commerce and Industry S Jagathrakshakan said: "I am sure that in spite
of disparity in the level of development of countries in the ASEAN
region, we would be able to map out a vision of economic cooperation to
enhance trade, investment, and infrastructure as well as resource
development". ASEAN members are Myanmar, Cambodia, Laos, Malaysia,
Indonesia, Singapore, Brunei, Vietnam, Philippines and Thailand.
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