ID :
17305
Thu, 08/28/2008 - 19:08
Auther :
Shortlink :
http://m.oananews.org//node/17305
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INDIA BULLISH ON GROWTH IN TRADE WITH ASEAN
From Christine Lim
SINGAPORE, Aug 28 (Bernama) -- India is confident that its trade with Asean will surpass US$50 billion annually after 2010 from US$37 billion last year with the conclusion of the Asean-India Free Trade Agreeement (FTA) negotiations for trade in goods.
India's Commerce and Industry Minister Kamal Nath expressed satisfaction
with the conclusion of the trade in goods agreement with Asean after six years
of negotiations.
"It took a long time to understand the sensitivity within Asean and for
Asean to understand India's sensitivity," Nath said during a media conference at
the Asean Economic Ministers meeting (AEM) here Thursday.
Of greater significance was the services and investment agreement with
Asean which will reduce trade barriers between the Asean and India, according to
him.
He said the target for completion of the negotiations for the services
and investment agreement with Asean was by end-2009.
During the AEM meeting in Singapore, the ministers announced the conclusion
of the Asean-India FTA negotiations for trade in goods.
A media statement released during the AEM meeting said the ministers noted
that despite the difficult issues in negotiations, both sides were able to reach
an agreement on the modality for tariff reduction and elimination.
The ministers agreed that officials should finalise the text of the
Asean-India Trade in Goods Agreement in time for signing during the Asean-India
Summit in December 2008.
Target implementation for tariff reduction under the agreeement is
beginning Jan 1, 2009.
Asean and India have agreed to start negotiations on the services and
investment agreement, according to a statement by Malaysia's Ministry of
International Trade and Industry (MITI).
Malaysia will co-chair the working group on investment with India whereby
the services working group will be co-chaired by Singapore, MITI said.
Despite challenges prevailing in the global and regional trade, Nath said
that Asean-India bilateral trade continued to grow at impressive rate.
From 2007 to 2008, trade in goods between Asean and India increased at an
average annual growth rate of 28 percent, based on statistics released during
the AEM meeting.
Asean exports to India during the same period grew at an annual rate of 31
percent on average, the fastest among Asean's exports to major trading partners.
On the investment side, India's foreign direct investment to Asean valued
at US$641 million in 2007, was the highest ever recorded since 2000.
"We hope the agreement on trade in goods will be converted to full-fledged
economic cooperation," Nath said.
He described the economic engagement between India and Asean as "profound"
with Asean-India trade constituting 9.6 percent of Indian global trade which
stood at US$400 billion.
Asean-India trade accounted for about two percent of Asean's global
trade.
Nath said Brunei's trade with India was substantial while economic
cooperation between Singapore and India was comprehensive.
On crude petroleum trade, he said India has agreed on tariff
reduction.
"Five years ago India did not move so much. Today, India has moved further
on liberalisation. For instance, in crude palm oil, we have moved from tariff of
50 to 60 percent five years ago to as low as zero tariff now," he added.
SINGAPORE, Aug 28 (Bernama) -- India is confident that its trade with Asean will surpass US$50 billion annually after 2010 from US$37 billion last year with the conclusion of the Asean-India Free Trade Agreeement (FTA) negotiations for trade in goods.
India's Commerce and Industry Minister Kamal Nath expressed satisfaction
with the conclusion of the trade in goods agreement with Asean after six years
of negotiations.
"It took a long time to understand the sensitivity within Asean and for
Asean to understand India's sensitivity," Nath said during a media conference at
the Asean Economic Ministers meeting (AEM) here Thursday.
Of greater significance was the services and investment agreement with
Asean which will reduce trade barriers between the Asean and India, according to
him.
He said the target for completion of the negotiations for the services
and investment agreement with Asean was by end-2009.
During the AEM meeting in Singapore, the ministers announced the conclusion
of the Asean-India FTA negotiations for trade in goods.
A media statement released during the AEM meeting said the ministers noted
that despite the difficult issues in negotiations, both sides were able to reach
an agreement on the modality for tariff reduction and elimination.
The ministers agreed that officials should finalise the text of the
Asean-India Trade in Goods Agreement in time for signing during the Asean-India
Summit in December 2008.
Target implementation for tariff reduction under the agreeement is
beginning Jan 1, 2009.
Asean and India have agreed to start negotiations on the services and
investment agreement, according to a statement by Malaysia's Ministry of
International Trade and Industry (MITI).
Malaysia will co-chair the working group on investment with India whereby
the services working group will be co-chaired by Singapore, MITI said.
Despite challenges prevailing in the global and regional trade, Nath said
that Asean-India bilateral trade continued to grow at impressive rate.
From 2007 to 2008, trade in goods between Asean and India increased at an
average annual growth rate of 28 percent, based on statistics released during
the AEM meeting.
Asean exports to India during the same period grew at an annual rate of 31
percent on average, the fastest among Asean's exports to major trading partners.
On the investment side, India's foreign direct investment to Asean valued
at US$641 million in 2007, was the highest ever recorded since 2000.
"We hope the agreement on trade in goods will be converted to full-fledged
economic cooperation," Nath said.
He described the economic engagement between India and Asean as "profound"
with Asean-India trade constituting 9.6 percent of Indian global trade which
stood at US$400 billion.
Asean-India trade accounted for about two percent of Asean's global
trade.
Nath said Brunei's trade with India was substantial while economic
cooperation between Singapore and India was comprehensive.
On crude petroleum trade, he said India has agreed on tariff
reduction.
"Five years ago India did not move so much. Today, India has moved further
on liberalisation. For instance, in crude palm oil, we have moved from tariff of
50 to 60 percent five years ago to as low as zero tariff now," he added.
