India and ASEAN have wrapped an agreement of free trade in goods that will create one of the largest free trade area in the world - a market of almost 1.8 billion people with a combined GDP of $2.75 trillion. The free trade agreement( FTA) which will eliminate tarrifs on 4000 products over 6 years - will be operation from January 1,2010.
The treaty is likely to kick off with only Singapore and Malaysia on board, with the remaining eight ASEAN members joining in when they ratify the treaty. The FTA can be implemented even if it is ratified by one country. The tariff reduction process in respect of that particular country would begin as scheduled. The others will get the benefit of reduced duties as promised under the FTA only when they are formally part of the agreement. The negotiations on services and investment are scheduled to be in place by August this year.
India has lined up a series of meetings with ASEAN – a trading bloc of 10 southeast Asian nations – over the next few months to reach a deal on opening up services trade. The services sector contributes over 55 per cent to India's GDP."Negotiators will meet from January 12-16 to take forward the talks on services trade," a senior Commerce Ministry official said, adding that more interactions are scheduled for March, April, May and July.
The treaty is likely to kick off with only Singapore and Malaysia on board, with the remaining eight ASEAN members joining in when they ratify the treaty. The FTA can be implemented even if it is ratified by one country. The tariff reduction process in respect of that particular country would begin as scheduled. The others will get the benefit of reduced duties as promised under the FTA only when they are formally part of the agreement. The negotiations on services and investment are scheduled to be in place by August this year.
India has lined up a series of meetings with ASEAN – a trading bloc of 10 southeast Asian nations – over the next few months to reach a deal on opening up services trade. The services sector contributes over 55 per cent to India's GDP."Negotiators will meet from January 12-16 to take forward the talks on services trade," a senior Commerce Ministry official said, adding that more interactions are scheduled for March, April, May and July.
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