Commerce Minister Piyush Goyal Pushes for Fairer Tariff Liberalisation in ASEAN FTA Review Talks

New Delhi, Sep 21 (KNN) Union Commerce and Industry Minister Piyush Goyal, during a stock-taking session of the ongoing review of the India-ASEAN Free Trade Agreement (FTA) in goods (AITIGA) held in Laos on Friday, stressed the need for fairer tariff liberalisation. 

Goyal underscored the necessity to address the concerns of Indian industries affected by the current trade framework, calling for swift corrective measures.

The review talks, which brought together economic ministers or their representatives from the ten ASEAN nations — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam — took stock of progress made so far in renegotiating the terms of the 2010 agreement. 

The India-ASEAN trade partnership is vital, with trade between the two regions reaching nearly $130 billion in 2022.

Minister Goyal expressed deep concern over what he termed "inequitable tariff liberalisation" under the existing FTA, arguing that it has adversely affected several Indian industries, particularly in sectors like agriculture, textiles, and manufacturing. 

"Indian businesses have been facing significant disadvantages due to the current tariff structure, which favours ASEAN imports, leading to injury in key domestic sectors," he said, urging for the agreement to be recalibrated to ensure mutual benefit.

The Minister’s warning was clear: "If corrective measures are not implemented during this review, the risk of trade diversion to other regions becomes inevitable," according to a statement by the Ministry of Commerce. 

India is keen to avoid a situation where cheaper imports from ASEAN under the current tariff regime overwhelm local industries, eroding India's competitive advantage.

Goyal also highlighted India's broader strategy of economic integration with global markets, pointing to ongoing negotiations of other FTAs, including with the European Union and the UK. He reiterated that any revised agreement with ASEAN must be designed to balance the needs of both regions, allowing Indian industries to compete on more equitable terms.

The ASEAN representatives acknowledged India’s concerns, with discussions set to continue in the coming months. Both sides expressed optimism that a mutually beneficial resolution could be reached.

This review of the India-ASEAN FTA is viewed as critical in strengthening ties while ensuring that the economic interests of all parties are upheld.

(KNN Bureau)