|
India-ASEAN free trade agreement getting final touches |
 |
The long-drawn negotiations on the India-ASEAN free trade agreement [FTA] is in the last lap. Senior officials from both sides are meeting in Cambodia later this week to give finishing touches to the deal. According to sources, most loose ends, especially one related to negative lists and market access for five agricultural items including palm oil, pepper, coffee and tea, have already been tied. Once all issues are satisfactorily resolved in this week’s meet, the two sides will work on the modalities for implementing them and try to meet the month-end deadline of concluding negotiations.
The negotiations had come to a standstill for several months due to disagreement between India and ASEAN countries, mainly Malaysia and Indonesia, over market access to be given by India to palm oil, pepper, coffee and tea. Since the two ASEAN countries are major producers of palm oil, both crude and refined, they did not want an agreement without special concessions for the product. The matter has more or less been resolved with the ASEAN agreeing to higher import duties than the 30% on crude oil and 40% on refined oil being demanded earlier. For tea, coffee and pepper too, the ASEAN has agreed to accept higher tariffs than being demanded and India has agreed to climb down a bit.
|
