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ASEAN logo. Photo Courtesy: Wikipedia
ASEAN logo. Photo Courtesy: Wikipedia

ASEAN, India to sign free trade pact

Fri-Aug 08, 2008

Agence France-Presse / Bangkok

Southeast Asian nations expect trade with India will soar once the regional bloc ASEAN signs a just-concluded deal with New Delhi at a regional summit in December, officials said on Friday.

Talks in Brunei on Thursday removed the remaining obstacles to the pact, which will liberalise trade in goods between India and the 10-member Association of Southeast Asian Nations, said the group's secretary general Surin Pitsuwan.

The deal covering billions of dollars of trade in goods, but not services, is expected to be signed during the ASEAN-India Summit in December, officials said, though it was not immediately clear when it would take effect.

Talks were supposed to have wrapped up in 2007, but got bogged down over Indian tariffs on crude and palm oil from regional heavyweights Indonesia and Malaysia, as well as metals and textiles from Thailand, officials said.

"It's done. All final obstacles on palm oil tariffs have been resolved," the Indonesian trade ministry's Director General of International Trade Cooperation Gusmardi Bustami told AFP in Jakarta.

Total trade between ASEAN and India amounted to 28.7 billion dollars in 2006, putting India eighth on the list of the bloc's trading partners behind countries like Australia and South Korea, according to ASEAN figures.

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