Asean India Trade Agreement

The ASEAN-India Trade in Goods Agreement (AITIGA) was signed on August 13, 2009, between the Association of South East Asian Nations (ASEAN) and India. The objective of the agreement was to promote free trade between the two regions and enhance economic cooperation.

The agreement covers trade in goods, services, and investment between ASEAN and India. The AITIGA provides for the reduction or elimination of tariffs on goods traded between the two regions. The agreement also contains provisions on customs procedures, rules of origin, trade remedies, and technical barriers to trade. Furthermore, the AITIGA includes a mechanism for resolving disputes between the parties.

The ASEAN-India trade agreement has been beneficial for both regions. According to data from the ASEAN-India Centre, trade between ASEAN and India has grown significantly since the agreement was signed. In 2019, trade between ASEAN and India reached $97 billion, a 10% increase from the previous year.

The AITIGA has also encouraged investment between the two regions. India has become one of the largest investors in the region, with investments in sectors such as energy, IT, and infrastructure. ASEAN, on the other hand, has invested in India`s manufacturing sector, pharmaceuticals, and tourism.

The ASEAN-India trade agreement has created a level playing field for businesses in both regions. With the elimination of tariffs and non-tariff barriers, businesses can compete fairly in the market. Additionally, the agreement has created opportunities for small and medium-sized enterprises (SMEs) to expand their businesses in both regions.

The AITIGA has also paved the way for greater regional integration in Asia. The agreement has strengthened economic ties between ASEAN and India, creating an environment for further economic cooperation in the region. The agreement has also spurred discussions on the Regional Comprehensive Economic Partnership (RCEP), which is a proposed free trade agreement between ASEAN, India, China, Japan, South Korea, Australia, and New Zealand.

In conclusion, the ASEAN-India Trade in Goods Agreement has been a positive development for both regions. The agreement has boosted trade and investment between ASEAN and India, created opportunities for SMEs, and paved the way for greater regional integration in Asia. As the two regions continue to work together, the AITIGA is expected to play an increasingly important role in promoting economic growth and development in the region.

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