India implements FTA on goods with Lao

Taking its FTA with the 10-nation Asean bloc a step further, India has implemented the free trade pact with Lao that slashes import duties on thousands of products, like seafood, chemicals and apparel.

In turn, Lao People's Democratic Republic will also slash import duties on a host of Indian goods.

Now that the trade pact with Lao has come into force, the agreement signed with the Association of Southeast Asian Nations (Asean) bloc in 2009 has become functional with the eight member countries.

Besides Lao, the other six countries with which India has operationalised FTAs are Indonesia, Vietnam, Myanmar, Malaysia, Singapore, Brunei Darussalam and Thailand.

While India and the Asean grouping signed a Free Trade Agreement (FTA) on goods in August, 2009, it was to be separately notified by New Delhi for each member country.

A notification bringing the FTA with Lao into effect has been issued by the Central Board of Excise and Customs (CBEC).

India-Lao bilateral trade was $36.98 million in 2009-10.

A Commerce Ministry official said pact with the remaining two Asean members -- Cambodia and the Philippines -- are also expected to become functional in the coming months.

India and Asean trade in goods is expected to touch $70 billion by 2012 from the present $43.5 billion.

The two are also engaged in negotiations to broadbase the FTA by liberalising the services and investment regime.