Association of Southeast Asian Nations (ASEAN) will retain 1,900 items on the negative list for Indian exporters, on which no duty cuts will be offered.
As against this, India has eased on its negative list to 560 items from 864 items in the ministerial-level meeting last month.
India has offered reduction in import duty on crude palm oil from 80 to 50 percent, tea from 100 to 50 percent and pepper from 70 to 50 percent over 15 years.
Under the FTA proposal, there would be no cuts in the first five years followed by gradual cuts over the next 10 years.
The next round of discussions between the two sides is expected to be held in the third week of September.
The government would submit its response to Asean's negative list next week, after discussion with stakeholders.
The concerns of the domestic industry would be fully protected under the proposed FTA since tariff for Indian goods would be reduced from the present average of 12.5 per cent to just 7.5 per cent over a 10-year period, sources informed.
If everything goes according to plan, the FTA will become operational from January 1, 2007.
marketing@alchempro.com
