India signs FTA with ASEAN

The first phase of implementation is supposed to be over by January 1,2010.

The pact,on which Prime Minister Manmohan Singh has formed a GoM to allay domestic concerns,will eliminate duties on 4,000 items by 2016,covering 80 per cent of India8217;s imports from the South-east Asian nations.

However,as many as 489 items have been kept out of the pact,keeping in view the concerns of vulnerable domestic industries and agricultural producers. The main areas of differences revolved around sensitive agricultural products,mainly in the plantation sector.

The agreement is 8220;well balanced8221; and is in harmony with the India8217;s Look East Policy,Sharma said.

Bilateral trade between ASEAN and India was of about USD 40 billion in 2007-08.