Context
The fifth meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee took place in Jakarta from July 29 to August 1, 2024. This meeting is a crucial step in enhancing economic cooperation between ASEAN and India, focusing on the review of the AITIGA, which was originally signed in 2009.
Overview of AITIGA
Background
- Establishment: The ASEAN-India Trade in Goods Agreement (AITIGA) was signed in 2009 to promote trade and economic cooperation between India and the ten ASEAN member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
- Importance: ASEAN is a significant trade partner for India, accounting for approximately 11% of India’s global trade. In the fiscal year 2023-24, India’s exports to ASEAN reached USD 41.2 billion, while imports were valued at USD 80 billion, resulting in a trade deficit of USD 38.46 billion.
Objectives of the Meeting
The primary objectives of the fifth AITIGA Joint Committee meeting included:
- Reviewing the AITIGA: To assess and enhance the existing trade agreement to make it more beneficial and trade-facilitative for both parties.
- Bilateral Discussions: Engaging in bilateral talks with ASEAN counterparts to address specific issues and explore avenues for deeper economic collaboration.
Key Outcomes of the Meeting
Progress on Negotiations
- Sub-Committees Engagement: The meeting involved all eight sub-committees focusing on various critical areas, including:
- National Treatment and Market Access
- Rules of Origin
- Standards, Technical Regulations, and Conformity Assessment Procedures
- Sanitary and Phytosanitary Measures
- Legal and Institutional Issues
- Customs Procedures and Trade Facilitation
- Trade Remedies
- Economic and Technical Cooperation
- Significant Discussions: Each sub-committee reported on their discussions, which contributed to a comprehensive understanding of the issues at hand and provided guidance for future negotiations.
Bilateral Meetings
- Engagement with ASEAN Members: The Indian delegation held bilateral talks with representatives from Malaysia, Singapore, Indonesia, and Vietnam. These discussions aimed to develop a common understanding of the challenges and opportunities within the AITIGA framework.
- Meetings with ASEAN Leadership: Separate meetings were conducted with ASEAN Secretary General Dr. Kao Kim Hourn and Deputy Secretary General Satvinder Singh to explore further economic cooperation possibilities.
Strategic Importance
Economic Cooperation
- Enhancing Trade: The review of AITIGA is seen as a long-standing demand from Indian businesses, aimed at increasing trade facilitation and reducing the trade deficit with ASEAN countries.
- Mutual Benefits: The agreement is intended to create a more balanced trade relationship, benefiting both ASEAN and Indian businesses by improving access to markets and resources.
Geopolitical Context
- Regional Stability: Strengthening economic ties through AITIGA can contribute to regional stability and cooperation, particularly in the context of shifting global trade dynamics.
- India’s Role in ASEAN: As India seeks to enhance its influence in Southeast Asia, engaging with ASEAN through trade agreements like AITIGA is crucial for its broader geopolitical strategy.
Conclusion
The fifth meeting of the AITIGA Joint Committee in Jakarta marks a significant step towards enhancing economic cooperation between ASEAN and India. The active participation of all member countries and the focus on substantive discussions across various sub-committees highlight the commitment to strengthening trade ties. The upcoming meetings and negotiations are crucial for addressing existing trade barriers and ensuring that the AITIGA remains a beneficial framework for both parties. This ongoing dialogue not only aims to bolster economic relations but also plays a vital role in India’s strategic positioning within the ASEAN region, making it a key area of interest for policymakers and stakeholders involved in international trade and diplomacy.
Source: PIB
UPSC Mains Practice Question
Q. Examine the role of the ASEAN-India Trade in Goods Agreement (AITIGA) in enhancing economic cooperation between ASEAN and India. Assess the strategic significance of this agreement in terms of trade facilitation, regional stability, and geopolitical influence. How can both parties address challenges and maximize the benefits of AITIGA to ensure a balanced and mutually beneficial trade relationship?