A meeting of the India – ASEAN Troika Trade Ministers was recently convened in New Delhi for informal consultation. The event centered around the ongoing Regional Comprehensive Economic Partnership (RCEP). Key attendees included the Union Minister of Commerce & Industry, the acting Minister of Trade of Indonesia, acting Minister of Commerce of Thailand, Secretary General of ASEAN, and the Trade Negotiating Committee (TNC) Chair of the RCEP.
India’s Standpoints
India effused a potent emphasis on adhering to the RCEP guiding principles to balance optimism on goods tariff reduction. The aim is to address sensitive issues in bilateral pairings like the India–China partnership through temporary and permanent deviations or exclusions. China has proposed that India should eliminate duties on over 90% of items imported from the nation — a concession China is ready to extend to ASEAN, Japan, and South Korea. In contrast, India has tentatively offered to eliminate duties on 74% of items from China under the RCEP deal. The Indian decision strives to safeguard domestic producers.
Addressing Trade Imbalances
India also accentuated on devising mechanisms to address persistent and wide imbalances in trade. Despite having a Free Trade Agreement (FTA) with ASEAN, India has witnessed a surge in goods imports due to instances of non-adherence to the rules of origin provisions. Lack of full cooperation in probing and addressing such breaches has also led to the FTA impacting adversely.
Non-Tariff Barriers in the Region
India’s utilization of preferential tariffs under the India-ASEAN FTA falls below 30%. This limited usage arises from standards, regulatory measures, and other non-tariff barriers in the region.
| Fact | Detail |
|---|---|
| India – ASEAN FTA Utilization | Below 30% |
| China’s Duty Elimination Request | More than 90% of items |
| India’s Tentative Offer | Duties elimination on 74% of items from China |
| Purpose | Protection of domestic producers |
Services Sector Negotiations
The meeting also saw discussions about the services sector. It had been previously promised that India would receive commensurate offers in services, however, this has not yet materialized.
