Sharma urges fast conclusion of Asean services agreement

Commerce, Industry and Textiles Minister Anand Sharma today urged the 10-member Association of Southeast Asian Nations (Asean) to conclude the services and investment negotiations for a Comprehensive Economic Partnership Agreement.

“Our negotiators must strive to ensure substantial conclusion of negotiations by this year but with ambition. For this end, I request all my Asean colleagues to provide necessary mandate to the negotiators to enable them show flexibility,” Sharma told during the Asean Economic Ministers meeting in Manado, Indonesia.

India had signed a free trade agreement with Asean countries that came into force from January 2010.

While negotiations for both started together, the deal on services got stuck due to concerns raised by certain countries on the issue of movement of professionals and easier visa regime for them. Under the services sector, India had been demanding greater opening in Mode IV category so that more and more professionals like doctors, nurses, chefs, accountants get greater job opportunities in the Asean countries.

Total trade between India and Asean increased by 24 per cent in 2010 reaching $51.3 billion. India’s exports grew at 33 per cent to $23.1 billion while imports from Asean increased by 18 per cent to $28.2 billion.

Sharma also met the economic ministers from Australia, China, Japan, Republic of Korea and New Zealand and discussed the potential of having a Comprehensive Economic Partnership in East Asia (CEPEA), according to a press release.

“We consider the East Asia Summit as an opportunity to establish a regional architecture for cooperation, connectivity and future integration, which will bring about a strong, sustainable and balanced economic growth in the region. For this, we need to pursue the proposed CEPEA vigorously,” Sharma said.