In a significant development for regional trade and economic cooperation, Shri Rajesh Agrawal, Additional Secretary of the Department of Commerce, Ministry of Commerce and Industry, represented India at the 20th ASEAN-India Economic Ministers’ meeting held on August 21, 2023, in Semarang, Indonesia.
This event marked a crucial milestone in the partnership between India and the Association of Southeast Asian Nations (ASEAN).
The meeting was co-chaired by Shri Rajesh Agrawal and Dr. Zulkifli Hasan, Minister of Trade of Indonesia. Notably, the Economic Ministers or their representatives from all 10 ASEAN member countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam, actively participated.
Furthermore, the Democratic Republic of Timor-Leste joined the meeting as an observer, signaling an expanding network of engagement in the region.
One of the focal points of the meeting was the thorough review of bilateral trade and investment relations between India and ASEAN.
Both sides emphasized their unwavering commitment to strengthening and enhancing this economic partnership to ensure that the ASEAN-India Comprehensive Strategic Partnership delivers substantial benefits for both parties, particularly in the post-pandemic era.
Remarkably, in the fiscal year 2022-23, India and ASEAN achieved a bilateral trade volume of USD 131.5 billion, with trade with ASEAN accounting for 11.3% of India’s global trade during the same period.
The Economic Ministers also had the opportunity to interact with the ASEAN-India Business Council (AIBC) during the meeting. T
hey took note of the significant activities undertaken by the AIBC in 2023, including the successful 5th ASEAN-India Business Summit held on March 6, 2023, in Kuala Lumpur.
The Ministers also acknowledged the challenges posed by Non-Tariff Barriers (NTBs) flagged by businesses and appreciated the growing exchanges between stakeholders from both sides.
The meeting wasn’t limited to economic affairs; the Ministers also engaged in discussions about regional and global challenges.
These discussions included topics such as the multidimensional impact of the COVID-19 pandemic, climate change, heightened volatility in the global financial market, inflationary pressures, and geopolitical tensions.
Resilient supply chains, food security, energy security, health, and financial stability were identified as priority areas of cooperation to address these challenges collectively.
However, the main agenda of this year’s meeting was the timely review of the ASEAN-India Trade in Goods Agreement (AITIGA), which was originally signed in 2009. Prior to the Economic Ministers’ meeting, an AITIGA Joint Committee meeting was held to deliberate the roadmap for the review process.
During the joint committee meeting, the Term of Reference and the Work Plan of the AITIGA Review Negotiations were finalized. Following constructive discussions, the Ministers endorsed these review documents, marking the formal commencement of negotiations with defined modalities.
The review of AITIGA has been a long-standing demand of Indian businesses, and its early commencement is expected to make the Free Trade Agreement (FTA) trade facilitative and mutually beneficial.
The Ministers agreed to follow a quarterly schedule of negotiations, with the aim of concluding the review by 2025. The review process is anticipated to enhance and diversify trade while addressing the current trade imbalance.
The decision to review AITIGA will now be presented at the forthcoming India-ASEAN Leaders’ Summit scheduled for early September, seeking further guidance and endorsement.
This meeting signals a promising future for the economic partnership between India and ASEAN, as both sides remain committed to fostering closer ties and addressing pressing regional and global challenges.