Free Trade Agreement entered into India with ASEAN!
In conformity with India’s Look East Policy, India and ASEAN FTA has been finally signed in 2009, as per the commitment of two parties in 2003 which will come into force on 1st January, 2010.
Under the agreement following important commitments have been made as many as 4185 items would be opened for FTA comprising of agricultural processing food items, garments and iron and steel, host of items. There would also be sensitive list of 489 articles, on which concessional tariff will not apply and 590 articles comprising of plantation on which tariffs will not be eliminated.
As a result of this agreement trade between the two countries is estimated to increase from 40 billion dollars to 60 billion in immediate term. This region is India’s 4th largest partner, so that it will meet 170 crores of consumer benefit from the treaty.
There is also provision of Mutual Recognition Agreement under which plenty of opportunities for professionals like Doctors, Engineers, Architects, CAs to seek job.
Laying down investment rules, transparency of investments and protection of investments would be comprehensively covered so that investment opportunities made free for Indian investors.
As the treaty becomes operative it will also have to sort out some of the thorny issues like protectionism by India’s frontiers sector. The issue of rules of origin pertaining to Chinese goods passing through ASEAN markets and their status in overall treaty is taken care of by a clause which emphasis that those goods in which more than 35% of value addition done at the country of origin.