September 1, 2010

India to implement FTA with Indonesia, Cambodia

India will soon implement the FTA in goods by slashing duties on hundreds of products including seafood with two more Asean countries-Indonesia, Cambodia-and vice versa.

Operationalised with the 10-member Association of Southeast Asian Nations (ASEAN) on January 1, the agreement is already functional with four members-Singapore, Thailand, Malaysia and Vietnam.

"Indonesia and Cambodia have completed the internal approval process of the pact. They have formally informed Commerce Minister Anand Sharma in Vietnam. Both will issue a notification in this effect with in a week. The remaining four-Laos, Philippines, Brunei and Myanmar-members would take some more time to implement the pact," a senior Commerce Ministry official said.

Though Singapore, Thailand and Malaysia account for more than 90% of India's trade with ASEAN countries, the remaining seven are also important markets.

India-ASEAN trade in goods was US$45 billion in 2008-09. The two sides aim to increase their trade to US$50 billion by the end of 2010.