India Urges Fast-Tracked Review Of ASEAN FTA Amid Termination Buzz

India has called for a swift conclusion to the ongoing review of the ASEAN Free Trade Agreement, amid reports that New Delhi may consider walking away from the pact due to lack of progress.

Commerce and Industry Minister Piyush Goyal held a virtual meeting with his Malaysian counterpart on Thursday, he posted on X.

Malaysia is India’s permanent coordinator within ASEAN on economic matters, and plays a key role in facilitating dialogue between India and the 10-nation bloc.

Goyal said he looked forward to “fast-tracking discussions with ASEAN member states” on the FTA, which has faced criticism in India over imbalanced trade benefits and concerns of import surges hurting domestic industry.

The FTA, formally known as the ASEAN-India Trade in Goods Agreement, has been under review since 2019.

His remarks come in the backdrop of reports suggesting that India may consider terminating the ASEAN FTA altogether, if the long-pending review fails to address core concerns, particularly in areas of market access, non-tariff barriers, and trade deficits.

Signed in 2009 and implemented in 2010, AITIGA governs India’s trade with ASEAN nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. However, Indian industries have flagged that benefits are skewed in favour of ASEAN countries.

Government sources told NDTV Profit that India had opened 71% of its tariff lines under AITIGA, despite having a significantly lower per capita income compared to ASEAN members. In contrast, Indonesia opened only 41%, Vietnam 66.5%, and Thailand 67%, giving Indian exporters far less respite.

Goyal has previously criticised AITIGA, calling it poorly negotiated and suggesting that countries like Indonesia, Vietnam, and Malaysia function as “China’s B-Team”, allowing indirect entry of Chinese goods into India.