On September
9, 2014
India signed
the Free
Trade
Agreement (FTA)
in services
and
investments
with 10
countries of
the
south-east
Asian and
ASEAN
region.
Nine out
of 10 ASEAN
countries
have signed
the same.
Philippines
is
completing
its domestic
procedure
and it is
expected to
sign soon.
The FTA on
goods was
signed in
2009 and
became
effective
from 2010.
The Services
Agreement
will open up
opportunities
for movement
of both
manpower and
investments
from either
side between
India and
ASEAN.
The trade
agreement
has boosted
the total
trade
between
India and
ASEAN
substantially
in the past
four years.
The
signing got
delayed
as it was
scheduled to
be signed in
Nay Pay Taw,
Myanmar,
during the
Asean
Economic
Ministers (AEM)
meeting on
August 26.
However, in
view of the
launch of
Prime
Minister’s
Jan Dhan
Yojana
for
inclusive
banking, the
Minister of
State
(Independent
Charge)
Commerce and
Industry
Nirmala
Sitharaman
(who was in
charge of
the launch
of the
scheme)
could not
attend the
conclave.
The FTA in
services is
in line with
other
bilateral
agreements
that India
has signed
so far.
Some of
the
important
articles
contained in
the
agreement
are the ones
on
transparency,
domestic
regulations,
recognition,
market
access,
national
treatment,
increasing
participation
of
developing
countries,
joint
committee on
services,
review,
dispute
settlement
and denial
of benefits.
Each ASEAN
member state
has tabled
individual
schedule of
commitments
which are
equally
applicable
for India
and other
ASEAN member
states.
India on
the other
hand has
tabled three
schedules of
commitments
— one for
Philippines,
one for
Indonesia
and another
for the
remaining
eight ASEAN
member
states.
The
agreement
will also
free
movement of
individuals
as a brief
annexure on
movement of
natural
persons (one
of the key
areas of
interest for
India) has
been
included in
the
agreement.
This
annexure
defines
business
visitors,
intra-corporate
transferees
(managers,
executives
and
specialists)
and
contractual
service
suppliers.
This will
help provide
commercially
meaningful
market
across in
ASEAN for
Indian
professionals,
including
those from
the IT/ITeS
sector.
On it
FICCI
president
Sidharth
Birla
has said, “It
will
supplement
the
India-ASEAN
FTA in goods
and help in
getting
greater
market
access for
India’s
professionals
and service
providers in
the
10-member
block. We
are happy
that an
annexure on
movement of
natural
persons has
been
included in
the
agreement,
which will
benefit our
professionals”. |