India and ASEAN FTA

India and 10 members ASEAN  countries have agreed to initiate the review of bilateral free trade agreement of goods to make it more user-friendly, simple and trade facilitative. India is not happy about the fact its Trade Deficit with ASEAN has wide and significantly since the pact was implemented in January 2010. The Niti Aayog study reveals that India trade deficit with ASEAN doubled to 10 billion US dollars in 2017 from 5 million in 2011. A review of India ASEAN FTA could help in improving utilization by making the pact simpler and user-friendly. India has managed to push the ASEAN members to review the FTA  pact.

Political Aspect of ASEAN FTA: Trade is major key of relationship with any contry around the world. India's Trade with ASEAN is very fundamental in order to promote our policies like Look East, Act East. It is important for overall National interest like availability of goods, employability, GDP growth. The ASEAN market is exteremly important for India. It involves 10 countries and 1.8 Billion dollar worth market. All the south-east ASEAN countries are following export led growth.

Changes India should expect if the pact is reviewed: The review should seek the balance between endowments, free trade area, simplifying the agreement and making it user-friendly. There are complexities in regulatory mechanism, it should be flexible. The negotiating barriers should be more transparent which will give room to more export and import. A better connectivity and infrastructure is required for better trade policy and promotion.

Impact of USA and China trade war over ASEAN FTA: The repercussion of this was between USA and China has been felt across the Globe, India and ASEAN are no exception to that. Given the fact that most of the developed countries of World is in a kind of recession and the growth has not been so good. Asia continues to be engine of growth to the world economy. This is very appropriate that inter-regional trade between the ASEAN Countries should be kept out of the impact what China and USA are doing amongst them.