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Trade pact with ASEAN was a 'silly' move, claims Minister Piyush Goyal
- Commerce and industry Minister Piyush Goyal criticized India's trade agreements with ASEAN at the Future Frontiers Forum in London.
- Goyal questioned the rationale behind the 2010 ASEAN-India Free Trade Agreement (AITIGA), stating it exposed India to Chinese imports.
- He mentioned that India entered into trade pacts with competitors without assessing the long-term impact.
- The AITIGA became operational in 2010, widening India's trade deficit with ASEAN over the years.
- India's exports to ASEAN fell while imports grew, causing concerns about non-reciprocity in FTA concessions and non-tariff barriers.
- India sought a review of the AITIGA due to soaring imports from ASEAN, citing issues with Rules of Origin provisions and other barriers.
- The ongoing review process of AITIGA and other trade agreements with countries like South Korea and Japan aims for completion by year-end.
- Goyal highlighted India's shift towards robust trade agreements with developed nations like Australia and ongoing negotiations with New Zealand.
- He mentioned agreements with the UAE, the UK, EFTA countries, and dialogues with the EU, USA, Peru, and Chile.
- India aims for agreements with countries that complement rather than compete, focusing on mutual benefits.
- Countries comprising ASEAN include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
- Goyal's criticism marks a candid statement from a senior NDA government official on the ASEAN FTA.
- The current review process reflects India's efforts to address concerns regarding trade imbalances and barriers.
- India aims to enhance trade relations with nations offering mutually beneficial opportunities.
- India's evolving vision focuses on strategic trade agreements that foster cooperation and complementarity.
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