India-Asean FTA deal off to a flying start
Wednesday, 6 January 2010
NEW DELHI, Jan 05 (Commodity Online): Asia's third largest economy, India said as a first step in implementing the Asean FTA deal, Free trade area agreement with Singapore, Thailand and Malaysia has become operational from January 1, 2010.
Under the FTA, considered the world's largest, covering a market of nearly 1.8 billion people, tariffs would be gradually slashed for over 4,000 product lines over a staggered period, by 2016, but sensitive products on both sides shielded to some degree.
India's trade with the three Asean economies stands at $40 billion, forming the bulk of the India-Asean total trade volume of nearly $44 billion.
In a notification issued here, India's finance ministry said agreements with rest of the countries of the grouping will be operational only after it is ratified by the respective parliaments of those countries.
Indian exports to Singapore, Thailand and Malaysia accounting for over 90 per cent of the India-Asean $44-billion trade, would also be given easy access to about 4,000 tariff items.
They specify that products having more than 35 per cent of local content will get preferential tax treatment under the free-trade treaty.
According to the notification, the rules also specify the methodology for calculation of the cost of products to be traded between India and the Association of South East Asian Nations, Asean.
The Asean countries comprise Brunei, Laos, the Philippines, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
Under the FTA, considered the world's largest, covering a market of nearly 1.8 billion people, tariffs would be gradually slashed for over 4,000 product lines over a staggered period, by 2016, but sensitive products on both sides shielded to some degree.
India's trade with the three Asean economies stands at $40 billion, forming the bulk of the India-Asean total trade volume of nearly $44 billion.
In a notification issued here, India's finance ministry said agreements with rest of the countries of the grouping will be operational only after it is ratified by the respective parliaments of those countries.
Indian exports to Singapore, Thailand and Malaysia accounting for over 90 per cent of the India-Asean $44-billion trade, would also be given easy access to about 4,000 tariff items.
They specify that products having more than 35 per cent of local content will get preferential tax treatment under the free-trade treaty.
According to the notification, the rules also specify the methodology for calculation of the cost of products to be traded between India and the Association of South East Asian Nations, Asean.
The Asean countries comprise Brunei, Laos, the Philippines, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam.