Cargo ships are moored at a port in Singapore (Photo: AFP/VNA) New Delhi(VNA) - The government is reviewing the continuation of the free tradeagreement (FTA) with ASEAN in the wake of the trading bloc’sreluctance to address India’s concerns over what it believes are asymmetries inthe trade pact during the last ten years.
According to Times of India, the country’s main grouse is therising trade deficit with the 10–country bloc.
The Indian government is looking to revamp its strategy on FTAs with Finance Minister NirmalaSitharaman on July 31 hinting that New Delhi will demand "reciprocal"agreements with countries where it is open to the market.
The NarendraModi government has blamed the trade agreements worked out by the United Progressive Alliance (UPA) for a large part of the problem oftrade deficit, arguing that the agreements with ASEAN, the Republic of Korea and Japan were signed inhaste and India’s interests were not adequately protected.
As a result, Minister of Commerce and Industry Piyush Goyal has been demanding renegotiation of certainprovisions under a review mechanism, something that ASEAN has so far refused toaccept.
At least three high-ranking officials in the administration said that thegovernment was looking at the option of exiting some of the FTAs, especiallythe one with ASEAN, if the terms of engagement were not inIndia’s favour.
In recent years, starting with the threat toblock a WTO agreement on tradefacilitation in 2015 to walking out of negotiations on the RegionalComprehensive Economic Partnership (RCEP), Indiahas hardened its stance in global engagements.
Sitharaman, Goyal and Bibek Debroy, who heads the Economic AdvisoryCouncil to PM, are looking at the options to strengthen India’s tradeengagements and a review of existing FTAs./.
VNA
