In a significant recommendation, the Global Trade Research Initiative (GTRI) has advised the Indian government to meticulously examine the bilateral Free Trade Agreement (FTA) with Singapore in conjunction with its involvement in the ASEAN bloc. GTRI suggests a holistic evaluation while scrutinizing the trade pact with the 10-nation ASEAN group.
Given that India and ASEAN are in the process of reviewing their trade agreement with a target completion date in 2025, GTRI extends a similar counsel for a detailed examination of the free trade pact with Thailand, another ASEAN member, signed in 2006.
The ASEAN countries, including Singapore, have played a substantial role in India’s trade, with five nations—Indonesia, Singapore, Malaysia, Thailand, and Vietnam—contributing significantly to India’s exports and imports. India’s export to ASEAN has seen a notable rise from USD 19.1 billion in 2008-09 to USD 44 billion in 2022-23, showcasing the increasing economic ties.
GTRI emphasizes studying India’s separate FTAs with Singapore and Thailand together, considering specific relaxations and conditions. It sheds light on the importance of strategic evaluations, especially concerning commodities like coal, palm oil, and electronics, urging a critical examination of rules of origin and value addition norms.
As India and ASEAN embark on the comprehensive review of their trade pact, GTRI’s recommendations hold weight, aligning with the evolving dynamics of India’s trade relations in the region.
