The India-Asean free trade agreement (FTA) on services and investment, expected to be signed on the sidelines of the Word Trade Organization ministerial conference here, might face another delay due to the absence of Thailand, the Philippines and two other Asean countries, a senior commerce and industry ministry official told Business Standard.
The trade pact entails greater access to the Asean countries - Singapore, Malaysia, Indonesia, Vietnam, Thailand, the Philippines, Cambodia, Laos, Brunei and Myanmar - by Indian professional and a relaxed investment regime.
During the Cabinet meeting last week, Finance Minister P Chidambaram and Law Minister Kapil Sibal had expressed their displeasure to Commerce and Industry Minister Anand Sharma for not consulting them on matters related to gaining market access through investment.
India and the 10-member Asean bloc already have a goods agreement in place since August 2011, providing tariff-free access to a range of product lines such as textiles, pharmaceuticals, chemicals, engineering products, processed food and auto parts, among others. Hence, after signing the deal in services and investment, FTA will be called Comprehensive Economic Partnership Agreement.
The deal in services was supposed to have been signed in 2009 when the goods pact was agreed upon. However, at that time, some Asean countries, particularly the Philippines and Indonesia, were apprehensive of Indians "eating away our jobs" and they were also not open to the idea that similar concessions have to be given within the Asean members, commerce ministry officials said.
Ever since talks begun in 2005, India's main demand has been to obtain greater job opportunities for its professionals in the Asean countries.
