India, ASEAN to start talks on opening services trade soon

Manash Pratim Bhuyan

New Delhi, Sept 20 (PTI) After signing a Free Trade
Agreement that will eventually lead to duty-free commerce for
bulk of the trade, India and the 10-nation ASEAN bloc are set
to start talks for opening the crucial services sector.

"Negotiations for the free trade pact (between India and
ASEAN) on services sector will begin soon," Ambassador of
Thailand Krit Kraichitti told PTI. He, however, said given the
complex nature of issues involved among India and 10 countries
of Southeast Asia, it would take about two years for the
negotiations to conclude.

Services sector is of key interest to Indian economy as
it contributes over 55 per cent to the GDP.

It is also emerging as an important area for export
earnings for the country. But the sector faces hurdles such as
harsh domestic regulations, including those relating to visa,
and the complex tax regime.

Noting that the services sector is "very important" to
multiply trade and investment between ASEAN countries and
India, the Thai ambassador said "safeguard measures" will have
to be incorporated before finalising the pact.

"Services sector is very important. The pact will benefit
all," he said, but added that there would be safeguards built
into the agreement, which will have to be "finalised
carefully". MORE PTI