ASEAN-INDIA TRADE IN GOODS AGREEMENT (AITIGA)

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Context: Representatives from India and all 10 ASEAN nations participated in the 3rd AITIGA Joint Committee meeting in New Delhi, with the objective of reviewing progress in negotiations and updating the work program for the ongoing review process.

About ASEAN-INDIA Trade in Goods Agreement (AITIGA)

What is AITIGA?	●The ASEAN-India Trade in Goods Agreement (AITIGA) is a free trade agreement (FTA) signed in 2009 between India and the 10 member states of the Association of Southeast Asian Nations (ASEAN). ●It aims to liberalize trade in goods between the two regions, promoting economic growth and development.
Objectives:	●Reduce and eliminate tariffs on most goods traded between India and ASEAN countries. ●Facilitate trade through simpler customs procedures, harmonized standards, and improved transparency. ●Increase market access for goods and services. ●Attract foreign investment and promote regional economic cooperation.
Key Features:	●Tariff Reductions: AITIGA provides for the phased reduction and eventual elimination of tariffs on over 90% of traded goods within a specified timeframe. ●Non-Tariff Barriers (NTBs): The agreement addresses NTBs like technical regulations, sanitary and phytosanitary measures, and customs procedures to ensure smoother trade flow. ●Rules of Origin: AITIGA establishes clear rules to determine the origin of goods and ensure they qualify for preferential treatment. ●Safeguard Measures: Provisions exist to protect domestic industries from sudden surges in imports. ●Dispute Settlement: A mechanism is available for settling trade disputes between India and ASEAN member countries.
Current Status:	●AITIGA is undergoing a comprehensive review launched in September 2022 to make it more trade-facilitative and mutually beneficial. ●The review process involves eight Subcommittees focusing on various policy areas like tariffs, NTBs, rules of origin, and trade facilitation. ●The 3rd meeting of the AITIGA Joint Committee in February 2024 reviewed progress and outlined further work. ●Completion of the review is targeted for 2025.

3rd AITIGA Joint Committee meeting

Key Discussions and Outcomes

• Progress Review: In-depth discussions centred around assessing the advancements achieved by the eight sub-committees, each dedicated to handling specific policy areas, including market access, rules of origin, and technical regulations.
• Sub-committee Reports: Comprehensive presentations from each sub-committee outlined both the progress made and challenges encountered within their respective domains. This detailed reporting provided a thorough understanding of the issues at hand in various policy areas.
• Focus Areas: Following the discussions, crucial areas for further deliberations were identified. These included simplifying customs procedures, harmonizing standards, and enhancing market access for specific products. This emphasis on key issues demonstrates a commitment to addressing practical challenges in the trade agreement.
• Work Program Update: The ongoing review process saw an update to the work program. Clear deadlines and specific tasks were delineated for each sub-committee, providing a structured framework for the negotiation process and ensuring accountability.
• Renewed Commitment: Both participating sides, India and ASEAN, reiterated their dedication to concluding the review by 2025. This reaffirmation signals a shared determination to enhance and finalize the trade agreement within the agreed-upon timeframe.

Potential Implications and Benefits

• Increased Trade Volume: Streamlined procedures and improved market access could lead to significant growth in trade between India and ASEAN, benefiting both economies.
• Reduced Trade Barriers: Simplified customs procedures and harmonized standards can reduce costs and delays for businesses, enhancing competitiveness.
• Wider Market Access: Businesses on both sides will gain access to new markets and opportunities, fostering economic diversification and growth.
• Enhanced Cooperation: The review process itself strengthens collaboration and understanding between India and ASEAN, leading to broader economic and political cooperation.

Challenges and Considerations

• Balancing Interests: Negotiating changes that satisfy all parties' interests can be complex, requiring careful consideration of each nation's specific needs and concerns.
• Non-Tariff Barriers: Addressing non-tariff barriers like subsidies and intellectual property rights is crucial for achieving truly free and fair trade.
• Implementation and Enforcement: Effective implementation and enforcement of any agreed-upon changes will be essential for realizing the full benefits of the review.

Way Forward

• Sub-committee Reports: Analyzing the specific reports can provide deeper insights into the challenges and proposed solutions for each policy area.
• Individual Country Positions: Understanding the priorities and concerns of each participating nation can help predict potential roadblocks and facilitate solutions.
• Impact on Specific Industries: Exploring the potential impact of the review on specific industries in both regions can shed light on winners and losers, and inform policy adjustments.

Conclusion

• The 3rd meeting of the AITIGA Joint Committee represents a significant step forward in modernizing the agreement and fostering stronger trade ties between India and ASEAN. While challenges remain, the commitment to finalize the review by 2025 offers a promising outlook for a mutually beneficial outcome with far-reaching economic and strategic implications.

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PRACTICE QUESTION Q. India actively promotes its position as a leading democracy in Asia. However, concerns exist about its internal human rights record and its stance on democratic backsliding in other Asian countries. How can India reconcile its challenges with its aspirations for regional leadership on democratic values? Answer Structure: ●Start by acknowledging India's commitment to democratic principles and its aspirations for regional leadership in promoting these values in Asia. ●Acknowledge the existence of concerns regarding India's internal human rights record and its perceived stance on democratic backsliding in other Asian countries. ●Emphasize the importance of addressing internal challenges and improving India's democratic institutions and practices. Discuss the need for robust mechanisms to safeguard human rights, promote the rule of law, and ensure accountability within India. ●Stress the importance of maintaining consistency in India's foreign policy approach towards promoting democratic values regionally. Discuss the need for India to align its external actions with its domestic principles, demonstrating a commitment to upholding democratic norms. ●Advocate for dialogue, engagement, and diplomacy as tools to address concerns about human rights and democratic backsliding both domestically and regionally. Highlight the significance of constructive engagement with other Asian countries to encourage democratic reforms while respecting their sovereignty.