ASEAN, India sign long-awaited free-trade agreement

The Association of Southeast Asian Nations (ASEAN) and India have signed a long-awaited free trade agreement (FTA) which will take effect next year and increase trade between ASEAN and India to US$60 billion within seven years, according to Thai Commerce Minister Pornthiva Nakasai.

Under the agreement, ASEAN members and India will abolish import tariffs for more than 80 per cent of their total imported goods between 2013-2016, while import tariffs for sensitive goods will be reduced to 5 per cent in 2016.

The FTA will enable member countries to reduce tariffs from January 1, 2010, onwards, she said.