India will sign a free trade agreement (FTA) with Asean during the 14th summit of the bloc scheduled for February in Thailand.
According to the Thailand news agency (TNA), India would submit a letter to the Commerce Ministry on Monday. The letter will contain the proposal of long-awaited FTA with Asean during next months summit.
Thai Commerce Minister Porntiva Nakasai after a meeting with the Thailand-based Indian trade ambassador said that the letter would confirm India would not attempt to change any of the provisions of the FTA, the negotiations for which concluded last year.
The ministry will soon ask for parliamentary approval to sign the pact to ensure that Thailand can also commit to the FTA. It will be in accordance with Article 190 of the Constitution Act, which requires such endorsement for international agreements.
Asean and India will be committed to liberalising trade in goods under the FTA. Thailand now enjoys zero tariffs on only 82 items exported to India.
Taxes on about 75 percent of trade in agricultural and industrial products will be gradually phased out by 2012. In 2015, tariffs for another 10 percent will be eliminated. The rest 15 percent consist of sensitive items that must be renegotiated.
The trade between India and Asean is expected to increase significantly from the present US$28bil USD annually with lower tariff barriers.
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