Source: News on Air
Context: The 8th Meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee concluded in New Delhi, focusing on modernizing the pact to boost trade.
About ASEAN-India Trade in Goods Agreement (AITIGA):
- What is AITIGA?
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- A free trade agreement (FTA) between India and the 10 ASEAN member states.
- Covers trade in physical goods, eliminating tariffs and reducing non-tariff barriers.
- Aims to enhance economic integration and bilateral trade.
- Origin:
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- Signed in 2009 at the 7th ASEAN-India Economic Ministers’ Meeting in Bangkok.
- Implemented in 2010, often termed the ASEAN-India FTA.
- 2014: ASEAN and India signed a separate Trade in Services Agreement.
- Key Features:
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- Tariff Liberalization: Gradual reduction of import duties on over 75% of traded goods.
- Rules of Origin: Ensures only ASEAN-India goods get preferential treatment.
- Exclusion Lists: Sensitive items (e.g., agriculture, auto parts) excluded from tariff cuts.
- Trade Expansion: Bilateral trade reached $121 billion (2023-24), making ASEAN 11% of India’s global trade.
- Recent Developments:
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- Ongoing Review: Discussions to modernize AITIGA for better usability and trade facilitation.
- 8th Joint Committee Meet (2024): Focused on making the agreement more trade-friendly and effective.
