'Glum' list proves a thorn as FTA with Asean dithers
27 Apr '06
2 min read
India-ASEAN free trade agreement (FTA) discussion entered a crucial phase though disturbed with Asean insisting that New Delhi reduce its karge list of negative items, differing to its earlier stand.
Asean has given a list of sensitive items on which there would be a phased tariff reduction. To protect domestic interests, India wants a negative list of items on which there will be no tariff reduction.
Official sources conveyed that India has provided a list of 991 items out of 1414 that fall under negative list.
Asean too has prepared a country-specific list of 2,900 sensitive items, including 500 highly sensitive items. New Delhi, feels that sensitivities in certain sectors like agriculture and textiles need to be sheltered.
In agriculture, it New Delhi had mooted tariff rate quotas for palm oil, tea and pepper for Asean partners at the trade negotiating committee meeting.
Asean has wanted clarifications on the figures and will come back on the issues only at the next meeting of the Trade Negotiation Conference (TNC) at May-end.
The TRQ is a specific quota offered to a country for exports at a fixed duty, which is lower than the importing country's normal duty.
India has already proffered significant ground to Asean over the rules of origin with Asean.
Execution of Asean FTA has already been delayed by over a year, with both sides having discord over the early harvest programme.
New date for discharge of the FTA is scheduled for January 1, 2007.
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