6th AITIGA Joint Committee Meetings

• 25 Nov 2024

Source: PIB

Why in News? 

Recently, the 6^th ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee and related meetings were held in New Delhi.

• It marked a crucial phase in reviewing the AITIGA to enhance trade relations between India and ASEAN nations.

What are Key Highlights of the 6th AITIGA Joint Committee Meetings? 

• Review Demand by India: India had sought a review of the AITIGA, originally implemented in 2010, citing disproportionate trade benefits for ASEAN countries. 
  • While India’s exports to ASEAN increased from USD 25.62 billion (FY 2010-11) to USD 41.2 billion (FY 2023-24), imports surged from USD 30.6 billion to USD 79.66 billion in the same period. 
• India’s Objectives in the Review:  
  • Enhanced Market Access: India wants ASEAN countries, particularly Vietnam, to make greater market-opening commitments for Indian goods. 
  • Stricter Rules of Origin (ROO): India seeks more stringent ROO provisions to prevent Chinese goods from being routed through ASEAN nations at preferential rates. 
• Advancement in Negotiations: India and ASEAN made initial progress towards initiating tariff negotiations, a crucial step in the review process.

Note:

ASEAN accounts for approximately 11% of India’s global trade. 

• Bilateral trade reached USD 121 billion in FY 2023-24 and stood at USD 73 billion (April-October 2024), marking a 5.2% growth. 
• India’s trade deficit with ASEAN widened from USD 4.98 billion in 2010-11, the first full year of operation of AITIGA to USD 38.4 billion in 2023-24.  

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims 

Q. Consider the following countries: (2018) 

1. Australia 
2. Canada
3. China 
4. India
5. Japan 
6. USA

Which of the above are among the ‘free-trade partners’ of ASEAN? 

(a) 1, 2, 4 and 5 

(b) 3, 4, 5 and 6 

(c) 1, 3, 4 and 5 

(d) 2, 3, 4 and 6 

Ans: (c)

Q. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016) 

(a) G20  

(b) ASEAN 

(c) SCO  

(d) SAARC 

Ans: (b)