By TIOL News Service

NEW DELHI, OCT 08, 2021: Union Minister of Commerce & Industry, Piyush Goyal, has called upon the ASEAN bloc to do away with Non-Tariff Barriers (NTBs). Addressing the "Special Plenary with the Trade Ministers of the Region: Indo-ASEAN Business", organised by the CII, Goyal also called for "curbing the misuse of Free Trade Agreements (FTAs) by third parties, often outside the ASEAN Region."

"It is unfortunate that in the recent past we had to deal with several restrictive barriers on our exports to the ASEAN region, particularly in the Agriculture & Auto sector. I think these only result in reciprocal action from other countries including from India, and will hurt the long term desire of our leaders to expand trade between the two countries," said Goyal, in his address through video conference.

Goyal also called upon the ASEAN Bloc to allow reciprocal FTA concessions to imports from India to correct the skewed trade imbalance in favour of the ASEAN.

"India has currently been witnessing exponential growth in imports from the ASEAN Region while our exports have been impeded by non-reciprocity in FTA concessions, NTBs, import regulations, quotas & export taxes from ASEAN countries. Such a review will enable alignment with contemporary trade practices, procedures & regulatory harmonization," said Goyal.

"Current trade of about USD 80 Billion makes Indo-ASEAN region one the largest trading areas globally. Despite increasing trade we are short of the target of USD 200 bn, which India & ASEAN were to achieve by 2022," he added.

Goyal reiterated the importance for fair, equitable, transparent, reciprocal and inclusive trade rather than enhancing trade through tariff reductions.

"Let me also underscore that if we were to review the ASEAN-India Trade In Goods Agreement (AITIGA), it may truly promote trade on both sides, support industry and manufacturing on both sides and help us support each other to truly become modern, progressive economies," he said.

This year marks the 25th Anniversary of India-ASEAN partnership. India's bilateral trade with ASEAN has grown steadily. India's merchandise exports to ASEAN increased from USD 23 bn in 2010 to USD 30 bn in 2020. While India's imports from ASEAN have surged from USD 30 bn in 2010 to USD 44 bn in 2020.

Goyal said, under the leadership of the Prime Minister Narendra Modi, India's "Look East" policy has transformed into "Act East" policy. In the 17th India-ASEAN Summit, on 12th November, 2020, PM Modi had announced contribution to the ASEAN COVID-19 Response Fund.