India Seeks Tariff Flexibility Amid ASEAN FTA Review

India is considering flexibility in tariff concessions under the AITIGA with ASEAN due to increased imports impacting domestic industries. The review, set for November, examines various trade aspects. With ASEAN being a significant trade partner, both sides aim for a 2025 conclusion to negotiations.

India is pushing for flexibility in tariff concessions under the ASEAN-India Trade in Goods Agreement (AITIGA) review, aiming to protect its domestic industries from rising imports, particularly in steel. The upcoming review negotiations, scheduled for November 19-22, underscore India's efforts to renegotiate terms of the 2009 agreement with the Association of Southeast Asian Nations (ASEAN).

The Indian government is advocating for adjustments in customs duty concessions and scheduling, addressing concerns of substantial import increases and FTA misuse by countries such as China. Commerce and Industry Minister Piyush Goyal has voiced the need to rectify imbalances in the current trade pact to support local businesses.

With ASEAN holding an 11 percent share in India's trade, both parties hope for significant progress in talks. The review process involves eight sub-committees tackling issues like market access and technical regulations. Concluding the review by 2025 is pivotal as India tries to eliminate trade barriers and support its industries against inequitable tariff liberalization.

(With inputs from agencies.)