Review of India-ASEAN pact in goods imperative: Par panel

A parliamentary panel today suggested that the government review India's free trade agreement in goods with ASEAN in view of rising trade deficit with the South East Asian bloc.

A report by the Parliamentary Standing Committee on Commerce said there is all likelihood that this trade deficit will further increase once the utilisation of this agreement for import increased.

The review was put on hold by ASEAN (Association of South East Asian Nations) member states on the ground that conclusion of ongoing RCEP negotiations will address India's concerns, which is "unfair", said the report.

The Regional Comprehensive Economic Partnership is a mega trade deal being negotiated among 16 countries including India, ASEAN and Australia.

"The committee is of the considered opinion that a review of the ASEAN India trade in goods agreement is imperative in view of the rising trade deficit with ASEAN," it said.

It also called for product specific rules in the India-ASEAN pact to check the possibility of passing off of other countries' goods like Chinese goods through preferential tariff route.

It asked the commerce ministry to make efforts to persuade ASEAN members for review of the agreement so that iniquitous terms of trade may be corrected.

The India-ASEAN trade in goods pact came into force from January 2010. Since its implementation, India's trade with ASEAN stood at USD 71.69 billion in 2016-17.

India's trade deficit with the 10-nation bloc has increased from USD 4.98 billion in 2010-11 to USD 9.56 billion in 2016-17.