Enhancing Sustainable Trade Cooperation Between India and ASEAN
Upgrading AITIGA to Boost Growth
GIỚI THIỆU
The 6th meeting of the Joint Committee on the ASEAN-India Trade in Goods Agreement (AITIGA) recently took place in New Delhi, India, aiming to review and upgrade the mechanisms within AITIGA to strengthen sustainable trade cooperation between India and ASEAN. This event marks a significant milestone in the economic relations between the two sides, promising new development opportunities for member states.
View of the 6th meeting of the Joint Committee on the ASEAN-India Trade in Goods Agreement (AITIGA). (Photo: Indian Ministry of Commerce)
Background of ASEAN-India Trade Cooperation
Since the signing of the Framework Agreement on Comprehensive Economic Cooperation on October 8, 2003, ASEAN and India have continuously strengthened their economic relations. Subsequently, the ASEAN-India Trade in Goods Agreement (AIFTA) was signed on August 13, 2009, and came into effect on January 1, 2010, laying the foundation for one of the world’s largest free trade areas, with a market of nearly 1.8 billion people and a combined GDP of $2.8 trillion.
In 2023, India became ASEAN’s sixth-largest trading partner among its Dialogue Partners, with total trade turnover reaching $100.72 billion, accounting for 2.86% of ASEAN’s total trade. While this figure represents a 10.93% decrease compared to 2022, direct investment inflows from India to ASEAN increased significantly from $2.04 billion in 2022 to $5.63 billion in 2023.
Efforts to Upgrade AITIGA
The 6th meeting of the Joint Committee on AITIGA, co-chaired by Indian Commerce Secretary Rajesh Agrawal and Deputy Secretary-General of Malaysia’s Ministry of Investment, Trade, and Industry Mastura Ahmad Mustafa, saw the participation of representatives from ASEAN countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. During the meeting, subcommittees discussed key issues such as market access, rules of origin, sanitary and phytosanitary (SPS) measures, standards and technical regulations, customs procedures, economic cooperation, trade remedies, and legal and institutional matters.
Notably, five subcommittees held in-person meetings and made significant progress in agreeing on terms and foundations for tariff negotiations. Additionally, ASEAN delegates participated in bilateral meetings with representatives from Thailand and Indonesia to discuss bilateral trade issues, enhance mutual understanding, and set directions for future negotiations.
Importance of Upgrading AITIGA
The upgrade of AITIGA aims not only to enhance trade cooperation between ASEAN and India but also to facilitate access for businesses to this vast market. For Vietnam, in particular, the upgraded agreement will create opportunities for agricultural products to access the Halal market, thereby boosting exports and driving economic growth.
Moreover, in the context of globalization and technological advancements, collaboration in science and technology between ASEAN and India is seen as a key pillar. Indian Ambassador to Vietnam Sandeep Arya emphasized the importance of making science and technology a new pillar of cooperation, opening up significant prospects for Vietnam-India bilateral relations within the framework of the Comprehensive Strategic Partnership from 2025 onward.
CONCLUSION
Strengthening sustainable trade cooperation between India and ASEAN through the upgrade of AITIGA is a strategic and forward-thinking initiative that brings mutual benefits to both sides. By enhancing market access, simplifying trade procedures, and fostering economic collaboration, this move is expected to drive significant economic growth and create new opportunities for businesses across member states. Moreover, it lays a solid foundation for deeper integration in science, technology, and innovation—key areas that are crucial for global competitiveness in an era of rapid technological advancement.
For ASEAN countries like Vietnam, the upgraded agreement not only expands access to the vast Indian market but also facilitates the export of key products such as agricultural goods to niche markets like Halal. This will further contribute to economic diversification and growth. Additionally, the emphasis on science and technology collaboration highlights the commitment to building a modern and dynamic economic partnership.
In the long term, the upgrade of AITIGA is not merely a tool for economic progress but a critical step in solidifying the strategic partnership between India and ASEAN. It paves the way for stronger ties, enhanced mutual understanding, and shared prosperity, ensuring that both regions remain vital players in the global economy for years to come.
(Vn-Industry.)
Source: Compilation
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