India & Asean usher in trade pact in services, investments

Dec 21 2012, 02:43 IST
Comments 0
SummaryIndia on Thursday said its free trade agreement in goods with the 10-nation Association of South East Asian Nations would be expanded soon to include services and investments, a move that would reinforce New Delhi’s ‘Look East Policy’ in the realm of trade and economic engagement and ease movement of Indian doctors, engineers, accountants and professionals in various other trades to the Asean countries.

range of complimentary inputs necessary for the production process and better integration of production networks,” noted Biswajit Dhar, director general, Research and Information System for Developing Countries.

While New Delhi had been insisting that the Asean offer was below expectations due to limited commitments offered on movement of natural persons, Asean was insistent on removal of the category of intellectual property (IP) from the definition of categories of natural persons. Besides, there were other outstanding issues like definition of investment, exclusion of IPR, portfolio investments, claims to money, permanent resident and indirect expropriation. India had also asked for opening up of the Mode 4 category or movement of natural persons- which has been opposed by Indonesia and Philippines because of unemployment issues in these countries.

Besides, India had also insisted on having at least a ‘limited’ Annex with common definitions for the various categories of natural persons on which future commitments can be made.

“Two-way flows in investments have also grown rapidly to reach $ 43 billion over the past decade. India-Asean trade has grown over 10 times in the 10 years since we launched the annual summits. Following the implementation of our FTA in goods, trade grew by 41% in Indian fiscal year of 2011-12,” Singh added.

The Prime Minister added that from energy resources to farm products, from materials to machinery, and from electronics to information technology, Indian and Asean companies are forging new partnerships of trade and investment.

Besides FTA with Asean, India is also negotiating similar market opening pacts with members of the grouping bilaterally.

India has already implemented FTA with Singapore and Malaysia and is negotiating with Indonesia and Thailand in this regard.

Single Page Format
Ads by Google

More from Frontpage

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...