New Delhi: Think-Tank GTRI Sunday suggested studying bilateral free trade agreements with the government Singapore and as part of asean unite when reviewing this trade agreement With the Group of 10 countries. Singapore is a member of the 10-nation ASEAN grouping with which India has a free trade agreement in goods since 2010. Separately, India has also implemented a comprehensive free trade agreement (fta) with Singapore in 2005.
The Global Trade Research Initiative (GTRI) has suggested a similar exercise with Thailand, another member of the Association of Southeast Asian Nations (ASEAN). India signed a limited free trade agreement with Thailand in 2006.
These suggestions are important as India and ASEAN have agreed to review their trade agreement and are aiming to end the practice by 2025.
ASEAN members are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
Five of these countries – Indonesia, Singapore, Malaysia, Thailand, Vietnam – account for 92.7 per cent of India’s exports and 97.4 per cent of imports from ASEAN.
India’s exports to ASEAN stood at US$19.1 billion in 2008-09 and are expected to increase to US$44 billion in 2022-23. On the other hand, imports from the Group of 10 countries increased to US$ 87.6 billion last fiscal year from US$ 26.2 billion in 2008-09.
“India has a separate FTA with Singapore in which the rules of origin of products are more relaxed. Both FTAs can be studied together. India has a separate FTA with Thailand called Early Harvest Scheme (EHS). which has relaxed rules of origin as compared to the India-ASEAN FTA. Offers. Substantial imports may occur through EHS. “Both FTAs can be studied together,” GTRI said in its report. Is.”
Along with Indonesia, the report said that in 2022-23, India imported goods worth a total of US$ 28.8 billion and the primary imports included coal (US$ 14.4 billion), including steam coal (US$ 13.7 billion) and Coking coal included both. USD 0.7 billion).
Additionally, India imported palm oil worth US$5.6 billion and copper ore worth US$0.9 billion from Indonesia.
India needs these products, most of the imports are at MFN (Most Favored Nation) zero duty, it said, adding that the FTA review may not be helpful in cutting such imports.
“Coal imports have increased by 121 per cent in the last one year alone and most of the coal is steam coal, which is available in abundance in India. India should focus on using local coal. MSP on mustard and other similar oils (Minimum Support Price) offer will help cut domestic prices and gradually wean people away from substandard palm oil, said Ajay Srivastava, co-founder of GTRI.
As with Singapore, the report said electronics were a significant part of imports, which totaled US$7.2 billion in the last fiscal year, including computers (US$1.7 billion) and integrated circuits (US$1.5 billion). Other notable imports include plastics, iron and steel, gold, and small amounts of fertilizers.
“Singapore does not produce coal, iron, steel or fertiliser. Companies can transship these from Singapore. But this increases costs and is bad business. Such imports should be out of the FTA, but there needs to be scrutiny that Why are they happening in the first place? Rules of origin can be examined for use of value addition norms for electronics products, gold etc.,” he said.
Additionally, the country’s imports from Malaysia stood at US$12.7 billion in 2022–23 and the main commodities included palm oil (US$3.5 billion), petroleum products (US$3.2 billion), and electronics (US$2.2 billion) and included Most of the imports are items that India needs and the FTA review may not be helpful in cutting most of such imports, GTRI said.
It notes that ASEAN, unlike the EU, operates as a group of countries with FTAs rather than a customs union. This means that each ASEAN member sets its own tariff schedule, rather than a shared tariff schedule.
In FTA negotiations, each ASEAN country typically negotiates its own tariff regime with a partner such as India. Ideally, India should have responded by offering a separate tariff schedule for each ASEAN member, taking into account the specific sensitivities of trade with each country.
“Instead, India, at ASEAN’s insistence, offered a single tariff schedule that applies to all members. This simplifies the process but limits the effectiveness of India’s exclusion list. schedule that does not effectively address specific sensitivities,” the report said.
The Global Trade Research Initiative (GTRI) has suggested a similar exercise with Thailand, another member of the Association of Southeast Asian Nations (ASEAN). India signed a limited free trade agreement with Thailand in 2006.
These suggestions are important as India and ASEAN have agreed to review their trade agreement and are aiming to end the practice by 2025.
ASEAN members are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
Five of these countries – Indonesia, Singapore, Malaysia, Thailand, Vietnam – account for 92.7 per cent of India’s exports and 97.4 per cent of imports from ASEAN.
India’s exports to ASEAN stood at US$19.1 billion in 2008-09 and are expected to increase to US$44 billion in 2022-23. On the other hand, imports from the Group of 10 countries increased to US$ 87.6 billion last fiscal year from US$ 26.2 billion in 2008-09.
“India has a separate FTA with Singapore in which the rules of origin of products are more relaxed. Both FTAs can be studied together. India has a separate FTA with Thailand called Early Harvest Scheme (EHS). which has relaxed rules of origin as compared to the India-ASEAN FTA. Offers. Substantial imports may occur through EHS. “Both FTAs can be studied together,” GTRI said in its report. Is.”
Along with Indonesia, the report said that in 2022-23, India imported goods worth a total of US$ 28.8 billion and the primary imports included coal (US$ 14.4 billion), including steam coal (US$ 13.7 billion) and Coking coal included both. USD 0.7 billion).
Additionally, India imported palm oil worth US$5.6 billion and copper ore worth US$0.9 billion from Indonesia.
India needs these products, most of the imports are at MFN (Most Favored Nation) zero duty, it said, adding that the FTA review may not be helpful in cutting such imports.
“Coal imports have increased by 121 per cent in the last one year alone and most of the coal is steam coal, which is available in abundance in India. India should focus on using local coal. MSP on mustard and other similar oils (Minimum Support Price) offer will help cut domestic prices and gradually wean people away from substandard palm oil, said Ajay Srivastava, co-founder of GTRI.
As with Singapore, the report said electronics were a significant part of imports, which totaled US$7.2 billion in the last fiscal year, including computers (US$1.7 billion) and integrated circuits (US$1.5 billion). Other notable imports include plastics, iron and steel, gold, and small amounts of fertilizers.
“Singapore does not produce coal, iron, steel or fertiliser. Companies can transship these from Singapore. But this increases costs and is bad business. Such imports should be out of the FTA, but there needs to be scrutiny that Why are they happening in the first place? Rules of origin can be examined for use of value addition norms for electronics products, gold etc.,” he said.
Additionally, the country’s imports from Malaysia stood at US$12.7 billion in 2022–23 and the main commodities included palm oil (US$3.5 billion), petroleum products (US$3.2 billion), and electronics (US$2.2 billion) and included Most of the imports are items that India needs and the FTA review may not be helpful in cutting most of such imports, GTRI said.
It notes that ASEAN, unlike the EU, operates as a group of countries with FTAs rather than a customs union. This means that each ASEAN member sets its own tariff schedule, rather than a shared tariff schedule.
In FTA negotiations, each ASEAN country typically negotiates its own tariff regime with a partner such as India. Ideally, India should have responded by offering a separate tariff schedule for each ASEAN member, taking into account the specific sensitivities of trade with each country.
“Instead, India, at ASEAN’s insistence, offered a single tariff schedule that applies to all members. This simplifies the process but limits the effectiveness of India’s exclusion list. schedule that does not effectively address specific sensitivities,” the report said.
(TagstoTranslate)Business News(T)Trade Agreement(T)Singapore(T)India’s Bilateral FTA(T)GTRI(T)FTA(T)ASEAN