India set to sign FTA with ASEAN giving hope to exporters

New Delhi, May 31 (PTI) India is set to sign an FTA with
ASEAN either in August or October this year, opening the USD
1.1-trillion South-East Asian market for Indian exporters who
find it hard to sell their merchandise in the recession-hit
West.

"All the differences have been resolved and the free
trade agreement (FTA) would be signed either on the sidelines
of ASEAN trade ministers meet in August or at the ASEAN Summit
in October," a senior commerce ministry official said.

He said signing trade-opening agreements with the
Association of South East Asian Nations (ASEAN) and South
Korea are on the 100-day agenda of the new United Progressive
Alliance government for restoring high growth to the economy.

Negotiations with South Korea have also been completed.

New Commerce and Industry Minister Anand Sharma said he
would take the drafts of the two FTAs to the Cabinet soon
for approval.

The FTA negotiations with the 10-nation South East Asian
bloc began in 2001 but went through several rough patches.

The pact, which aimed at opening the 1.5 billion-people
market, has been delayed several times due to the differences
over issues such as restricted list of goods, duty cut in farm
products like palm oil and rules related to value addition.

While the negotiations were concluded in the second half
of 2008, differences arose on the methodology of breaking the
customs barriers.

ASEAN accounts for 9.6 per cent of India's global trade.

India's exports, which significantly depend on the
developed markets of the US and Europe have been shrinking for
the last six months on slowdown in demand for merchandise in
these recession-hit markets.

The country's exports managed a meager growth of 3.4 per
cent in 2008-09 at USD 168 billion. PTI RR
RKM