Targeting a two-way
trade of USD 100 billion by 2015, India and ASEAN will formally declare
conclusion of negotiations for their ambitious free trade agreement to
liberalise trade in services and investments, on December 20 coinciding
with their summit in New Delhi.
"We will definitely conclude it and then we are duty bound to report to the heads of states and heads of the governments who shall formally make the declaration on December 20," Commerce and Industry Minister Anand Sharma said at a joint press conference with trade ministers of key ASEAN countries.Currently, the trade between India and Association of South East Asian Nations (ASEAN) stood at USD 80 billion."We are aiming that the trade between the two sides will touch USD 100 billion by 2015," Sharma said. Cambodian Commerce Minister Cham Prasidh expressed hope that the two-way commerce would cross USD 100 billion mark. After operationalising free trade agreement in goods in August last year, both the sides engaged in widening the base of the pact by including services and investments. However, the talks were getting delayed due to differences in opening the sectors. To mark the 20th anniversary of dialogue-level partnership and the 10th anniversary of Summit-level partnership with ASEAN, India is hosting the India-ASEAN Commemorative Summit on the theme "India and ASEAN: Partners in Progress and Prosperity" on December 20-21. Sharma said that all the ministers have strongly supported the process of negotiations "so that we can have an ambitious and balanced comprehensive economic agreement which would be in place once we conclude the services and investment chapter". He said that after conclusion of the talks, it may take an year to fully implement the pact. Earlier, while speaking after the inauguration of 2nd India-ASEAN business fair organised by Ficci, Sharma said the negotiations for Regional Comprehensive Economic Partnership (RCEP), a mega trade agreement comprising 16 countries of the region including India and China, are expected to conclude by 2015. Besides, the free trade pact with ASEAN, India is negotiating market opening pact bilaterally with the members of the block. India has already implemented FTA with Singapore and Malaysia and is negotiating with Indonesia and Thailand in this regard. India is keen to conclude talks on services as the sector contributes over 50 per cent in the country's economic growth. When asked whether all the issues, particularly from Philippines, hampering negotiations related with services have been resolved, Prasidh said senior officials are meeting today to resolve all the matters. "Tomorrow the ministers will endorse the recommendations of the senior officials and we would submit it to the leaders," he added. Philippines is a strong player in the global outsourcing. Its BPO industry accounts for about 15 per cent of the global outsourcing market and has been the fastest-growing segment of the countrys economy. Talking about the bilateral free trade agreements, Srirat Rastapana, Director General, Department of International Trade Promotion, Thailand, said the ongoing talks for the market opening pact is likely to conclude by next month. The two countries have already abolished the duties on 82 items under an 'Early Harvest Scheme' launched in 2004. EHS is the initial phase of the FTA, which is to be upgraded into a full-fledged arrangement for reduction and elimination of duties on about 90 per cent of goods traded between the countries. The FTA will also cover opening up of trade in services and investment, areas of interest to India. Speaking at the fair inauguration, all the ASEAN (Association of Southeast Asian Nations) members invited Indian companies to invest in their countries in areas like IT, healthcare, food processing and infrastructure. Indonesian Trade Minister Gita Irawan Wirjawan sought investments in sectors like IT and health care. Similarly, Vietnamese Industry and Trade Minister Vu Huy Hoang sought investments in areas like energy and infrastructure. Expressing his Prime Minister's worry, Malaysian Minister in Prime Minister Department Dato' G Palanivel said India is not giving infrastructure projects to their firms. "My Prime Minister keeps on telling me that India is not giving Malaysian companies infrastructure projects. It is buying a lot of palm oil but they are not giving us the opportunity to participate in the infrastructure work in India," he said adding that the Malaysian Prime Minister is expected to raise the issue with his Indian counterpart in the meeting on Wednesday. Myanmar Deputy Minister for the Ministry of Commerce Pwint Sann talked about the Mekong-India economic corridor, which proposes to link corridors in the peninsular, and possibly the north-eastern, regions of India with the East Asian region. On this Sharma said, "Thailand, Myanmar and India are working closely on that. I hope it will be completed as early as possible. It would also unleash the potential of entire north east region of India, Covering about 8,000 km, it is something truly impressive". Further, Sharma said although the two-way trade between India and ASEAN is increasing by about 30 per cent, "still huge potential exists to boost the commerce". "The numbers are well below the potential. We need to take steps to boost trade and investment," he said. India is ASEAN's seventh largest trading partner and sixth largest investor in the 10-member bloc. The two-way investments stood at about USD 75 billion presently. He added that after the implementation of free trade pact in services and investments, it would open market for about 1.8 billion people. In the 2nd India-ASEAN business fair, about 265 companies from ASEAN and India are showcasing products and services. "Over 200 companies from ASEAN are present in the fair. There will be B2B meetings besides seminars. The move will help in increasing economic relations among the nations," Ficci Secretary General Didar Singh said. Meanwhile later speaking at the business fair and conclave, Minister of State for Commerce and Industry S Jagathrakshakan said: "I am sure that in spite of disparity in the level of development of countries in the ASEAN region, we would be able to map out a vision of economic cooperation to enhance trade, investment, and infrastructure as well as resource development". ASEAN members are Myanmar, Cambodia, Laos, Malaysia, Indonesia, Singapore, Brunei, Vietnam, Philippines and Thailand.
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