ASEAN-India Trade in Goods Agreement (AITIGA)

Source: News on Air

Context: The 8th Meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee concluded in New Delhi, focusing on modernizing the pact to boost trade.

About ASEAN-India Trade in Goods Agreement (AITIGA):

• What is AITIGA?

• A free trade agreement (FTA) between India and the 10 ASEAN member states. Covers trade in physical goods, eliminating tariffs and reducing non-tariff barriers. Aims to enhance economic integration and bilateral trade.

• A free trade agreement (FTA) between India and the 10 ASEAN member states.

• Covers trade in physical goods, eliminating tariffs and reducing non-tariff barriers.

• Aims to enhance economic integration and bilateral trade.

• Origin:

• Signed in 2009 at the 7th ASEAN-India Economic Ministers’ Meeting in Bangkok. Implemented in 2010, often termed the ASEAN-India FTA. 2014: ASEAN and India signed a separate Trade in Services Agreement.

• Signed in 2009 at the 7th ASEAN-India Economic Ministers’ Meeting in Bangkok.

• Implemented in 2010, often termed the ASEAN-India FTA.

• 2014: ASEAN and India signed a separate Trade in Services Agreement.

• Key Features:

• Tariff Liberalization: Gradual reduction of import duties on over 75% of traded goods. Rules of Origin: Ensures only ASEAN-India goods get preferential treatment. Exclusion Lists: Sensitive items (e.g., agriculture, auto parts) excluded from tariff cuts. Trade Expansion: Bilateral trade reached $121 billion (2023-24), making ASEAN 11% of India’s global trade.

• Tariff Liberalization: Gradual reduction of import duties on over 75% of traded goods.

• Rules of Origin: Ensures only ASEAN-India goods get preferential treatment.

• Exclusion Lists: Sensitive items (e.g., agriculture, auto parts) excluded from tariff cuts.

• Trade Expansion: Bilateral trade reached $121 billion (2023-24), making ASEAN 11% of India’s global trade.

• Recent Developments:

• Ongoing Review: Discussions to modernize AITIGA for better usability and trade facilitation. 8th Joint Committee Meet (2024): Focused on making the agreement more trade-friendly and effective.

• Ongoing Review: Discussions to modernize AITIGA for better usability and trade facilitation.

• 8th Joint Committee Meet (2024): Focused on making the agreement more trade-friendly and effective.