The bustling streets of New Delhi witnessed a crucial milestone in economic cooperation between India and the Association of Southeast Asian Nations (ASEAN) this week. From February 16-19, the 3rd meeting of the AITIGA Joint Committee convened, marking a decisive step towards modernizing the ASEAN-India Trade in Goods Agreement (AITIGA). This renewed pact holds the potential to significantly boost trade flows between the two regions, unlocking a treasure trove of economic opportunities.
Signed in 2009, the AITIGA has served as a sturdy bridge connecting the diverse economies of India and ASEAN. Bilateral trade has thrived under its auspices, reaching an impressive USD 131.58 billion in 2022-23. However, both sides recognized the need to adapt to evolving economic landscapes and unlock even greater prosperity. Thus, in September 2022, they embarked on a collaborative review of the agreement, aiming to enhance its trade-friendliness and mutual benefits.
The 3rd meeting saw representatives from all ten ASEAN member nations actively participate in eight dedicated sub-committees. Each committee tackled specific policy areas crucial to the agreement’s effectiveness, including market access, rules of origin, and technical standards. Their reports and discussions painted a picture of encouraging progress, laying the groundwork for further refinement.
Following insightful exchanges, the Joint Committee charted a clear course for the review process. Key areas for focused negotiations were identified, and the work plan was meticulously updated to maintain momentum. Valuable guidance was also provided to the sub-committees, empowering them to continue their critical work with renewed precision.
Both India and ASEAN are demonstrably committed to concluding the review by 2025, underscoring their shared vision for a revitalized trade landscape. This timeline reflects their understanding of the transformative potential this modernized agreement holds. The 4th meeting of the Joint Committee, scheduled for May 2024 in Kuala Lumpur, Malaysia, will serve as a crucial platform to build upon the achievements in New Delhi.
While economic gains are a prominent driving force, the review process signifies a deeper intent. It reflects a commitment to fostering stronger economic ties, promoting regional cooperation, and ultimately, building a more interconnected and prosperous future for both India and ASEAN. The collaborative spirit witnessed throughout the meeting is a testament to their shared belief in the power of partnership to unlock collective progress.
