6th AITIGA Joint Committee Meetings | 25 Nov 2024

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)

Australia
Canada
China
India
Japan
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

(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

(d) SAARC

Ans: (b)