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India warns ASEAN nations to review FTA 

At the second Asean-India summit India signed the deal of free trade agreement with the ten Asean countries in Bangkok, 2009. India and Asean countries agreed on regional Comprehensive Economic Cooperation Agreement(CECA or RCEP) in 2003 and this agreement was basic framework of Asean-India free trade & investments deal, which includes FTA goods, services and investments.

In year 2018-19 total trade between India and Asean countries became $97 bn with $38 bn export and $59 bn imports from Asean nations. Due to this free trade agreement India face $21 bn fiscal deficit. This is huge for any nation in just $97bn trade. Trade with Asean countries exacerbate with annually 13-14% growth and estimated it will became $300 bn in year 2025.

China has been continuously supply its products to the India through Asean Countries because via Asean countries Chinese goods get reliefs on import taxes or sometimes zero. India had urged Asean Countries earlier in Nov, 2019 during last Asean-India summit. to review FTA as Chinese goods dumped into Indian market through third country but Asean nations ignored it and not took any admirable step. After Galwan vally standoff, India continue tightening it's policies for china in both economically and strategically. So finally India warns Asean countries, if they not strengthen rules of origin to check influx Chinese goods then India will pull out from Free Asean-India Trade Agreement(FTAs).


  • Asean countries should ensure that Chinese goods will not come into India through this route because as many Chinese goods taking advantage of Asean-India FTAs. Imports at reduced or zero duty place in Indian domestic market that’s a major disadvantage for Indian manufacturer.
  • India deal FTAs with these countries but many Indian manufacturing sectors like automobile are paying more custom duties in these countries compared to other Asian countries.
  • On more than 75% products of Indonesia, India charges less or zero custom duty whereas Indonesia gives tarrifs relief only on 50% Indian products.

Reply by Asean nations

we undersand india’s concerns about it. they stated that we are ready to solve trade problems and we will investigation Chinese products trade in our countries and resolve this concern as soon as possible.

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