Govt Seeks Exporters’ Inputs to Boost ASEAN Trade Pact Usage

New Delhi, June 20 (KNN) India’s exports to the ASEAN (Association of Southeast Asian Nations) bloc fell by 5.7 per cent in FY25 to USD 38.96 billion, while imports rose by 5.6 per cent to USD 84.16 billion, widening the trade deficit to USD 45.2 billion.

In comparison, the deficit stood at just USD 8 billion when the ASEAN-India Trade in Goods Agreement (AITIGA) was implemented in 2010.

Despite the free trade agreement, more than half of India’s exports to ASEAN are taking place outside the pact’s framework.

Exporters are paying regular import duties instead of availing the lower or zero-duty benefits under AITIGA, highlighting serious underutilisation of the agreement, which currently sees usage well below 50 per cent.

To address this, the Commerce Department has begun collecting feedback from exporters and industry stakeholders.

The aim is to understand and resolve operational hurdles, procedural delays, or market challenges that may be preventing optimal use of the trade pact.

Exporters have been asked if they understand the process of obtaining a Certificate of Origin (COO) – essential for availing FTA benefits – and whether they face issues with interpreting rules of origin, tracing raw materials, or obtaining the COO on time.

Concerns have also been raised over inconsistent guidance from customs, high documentation costs, and varying interpretations of rules by ASEAN authorities.

The Commerce Department intends to use this feedback to guide its ongoing review of AITIGA and take up these issues during future negotiations with ASEAN countries, aiming to boost trade and reduce the deficit.

(KNN Bureau)