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Home Articles

ASEAN-India Free Trade Area (AIFTA) : Building Strong Economic Partnerships

September 27, 2015
in Articles, Free Trade Agreements
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The Framework Agreement on Comprehensive Economic Cooperation between ASEAN and India was signed in October 2003 and served as legal basis to conclude further agreements, including Trade in Goods Agreement, Trade in Services Agreement, and Investment Agreement that form the ASEAN-Indian Free Trade Area (AIFTA).

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The ASEAN-India Trade in Goods Agreement was signed and entered into force on 1 January 2010. Under the Agreement, ASEAN Member States and India have agreed to open their respective markets by progressively reducing and eliminating duties on 76.4% coverage of good.

The ASEAN-India Trade in Services Agreement was signed in November 2014. It contains provisions on transparency, domestic regulations, recognition, market access, national treatment and dispute settlement. The ASEAN-India Investment Agreement was also signed in November 2014. The Investment Agreement stipulates protection of investment to ensure fair and equitable treatment for investors, non-discriminatory treatment in expropriation or nationalisation as well as fair compensation.

Economic co-operation activities under the AIFTA are now being undertaken on agriculture, fisheries and forestry; services; mining and energy; science and technology; transport and infrastructure; manufacturing; human resource development; and other sectors such as handicrafts, small and medium enterprises (SMEs), competition policy, Mekong Basin Development, intellectual property rights and government procurement.

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  • Home
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