ASEAN-India Trade in Goods Agreement

14-05-2024

ASEAN-India Trade in Goods Agreement

   Why in the news?                          

Recently,The 4th Joint Committee meeting for the review of AITIGA (ASEAN-India Trade in Goods Agreement) was held in Putrajaya, Malaysia.

About ASEAN-India Trade in Goods Agreement:

• It is a trade deal between the ten member states of ASEAN and India. It was signed at the 7th ASEAN Economic Ministers-India Consultations in Bangkok, Thailand in 2009.
• The agreement, which came into effect in 2010, is sometimes referred to as the ASEAN-India Free Trade Agreement.
• It covers trade in physical goods and products; it does not apply to trade in services. ASEAN and India signed a separate ASEAN-India Trade in Services Agreement in 2014.
• Under the Agreement, ASEAN Member States and India have agreed to open their respective markets by progressively reducing and eliminating duties on 76.4 percent coverage of goods.

•  India and ASEAN registered a bilateral trade of $122.67 billion in 2023-24.
• ASEAN is one of the major trade partners of the country, with a share of 11 per cent in India’s global trade.
•  Exports to ASEAN countries grew from $37.47 billion in FY2019 to $41.21 billion in FY2024, a 9.96 percent increase. On the other hand, imports from the bloc saw a more significant rise of 34.30 per cent from $59.32 billion to $79.67 billion.

What is The Association of Southeast Asian Nations (ASEAN)?

• It Was established on August 8, 1967 with the signing of the Bangkok declaration by five countries: Indonesia, Malaysia, Philippines, Singapore, and Thailand.
• Presently ASEAN comprises 10 member states namely Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Laos, Myanmar, Cambodia and Vietnam.
• It promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration between its members and other countries in Asia.
• The ASEAN Summit is the highest policy-making body in ASEAN comprising the heads of State or government of ASEAN member states. As per regular practice, the ASEAN Summit Meetings shall be held twice annually. The first ASEAN Summit was held in Bali, Indonesia on February 23-24, 1976.
•  It is considered one of the most influential groupings in the region. India and several other countries, including the US, China, Japan and Australia, are its dialogue partners.

                     Source: PIB

Consider the following statements:

Statement-I

The ASEAN-India Trade in Goods Agreement was signed at the 7th ASEAN Economic Ministers-India Consultations in Bangkok in 2009.

Statement-II

The ASEAN-India Trade in Goods Agreement only applies to trade in physical goods and does not apply to trade in services.

Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

B.Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

C.Statement-I is correct, but Statement-II is incorrect.

D.Statement-I is incorrect, but Statement-II is correct.

Answer A