ASEAN Deal Stalemate: India's Quest for Equitable Trade

Asean countries are hindering the progress of discussions on revising the 2009 free trade agreement with India. The deal, crucial for India's trade balance, has seen slow negotiations. India seeks to rectify trade disparities, but ASEAN is resistant, prompting Indian industry dissatisfaction.

Asean nations continue to stonewall efforts to renegotiate a key free trade agreement with India, according to a government official. The decades-old deal, crucial for balancing trade asymmetries, has prompted nine rounds of stagnant talks, resulting in mounting frustration from Indian industry leaders.

Since its inception in 2009, the agreement has led to a significant trade imbalance, with India's exports to ASEAN stagnating and imports skyrocketing. India's Commerce Minister Piyush Goyal criticized the arrangement, arguing that it inadvertently benefits Chinese goods entering India via ASEAN members.

As negotiations drag, India's demands for increased tariff line accessibility and balanced trade remain unmet. This issue highlights the region's complex trade dynamics and the challenges of revising older agreements to reflect current economic realities.

(With inputs from agencies.)