21st ASEAN-India Economic Ministers Meeting Focuses on Trade

Why in the news?

India and ASEAN reviewed trade relations at the 21st AEM-India meeting, discussing the ASEAN-India Trade in Goods Agreement and India’s push for equitable tariff reforms.

About 21st ASEAN-India Economic Ministers Meeting Held in Lao PDR:

  • Commerce and Industry Minister Shri Piyush Goyal co-chaired the 21st ASEAN-India Economic Ministers (AEM-India) meeting with Lao PDR’s Minister of Industry and Commerce, E. Malaithong Kommasith.
  • Ministers or representatives from all 10 ASEAN countries attended, with Timor-Leste joining as an observer.

Discussions on Strengthening Trade Relations:

  • Ministers reviewed the trade and investment relations, noting a bilateral trade of USD 120.9 billion in 2023-24, with ASEAN contributing 9% to India’s global trade.
  • Goyal stressed the need to address industry concerns related to the existing Free Trade Agreement (FTA) and called for an upgrade to the ASEAN-India Trade in Goods Agreement (AITIGA) to maintain competitiveness.

Progress on AITIGA Review and Bilateral Meetings:

  • The Ministers emphasised expediting the AITIGA review by 2025 to ensure balanced and mutually beneficial outcomes.
  • Goyal also advocated setting up Joint Committees to review the Services and Investment Agreements signed in 2014.
  • He held bilateral discussions with Switzerland’s Secretary for Economic Affairs on India-EFTA partnerships and interacted with the FICCI-led ASEAN-India Business Council delegation.

About Association of Southeast Asian Nations (ASEAN):

  • Establishment: Formed in August 1967 in Bangkok, Thailand.
  • Purpose: Promotes economic, political, and security cooperation in Southeast Asia.
  • Founding Members: Indonesia, Malaysia, Philippines, Singapore, and Thailand.
  • Chairmanship: Rotates annually among Member States in alphabetical order.
  • Population & GDP: 19 million people with a combined GDP of USD 3.2 trillion.
  • India-ASEAN Trade: USD 98.39 billion (April 2021 – February 2022), with key trading partners being Indonesia, Singapore, Malaysia, Vietnam, and Thailand.
  • Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times