New Delhi: The Central Board of Excise and Customs on Friday notified the customs tariff rules for duty-free trade between India and the 10 member Association of South East Asian Nations (Asean). Both sides had signed a Free Trade Agreement in August at Bangkok. Initially, duties will be slashed on chemical and apparel products, among others.
The notification signifies that the FTA has become operational. However, the benefits of the deal will be available only for trade with Singapore, Malaysia and Thailand at the moment as these nations have ratified the deal. The other Asean members are expected to ratify the FTA in the coming months. Though the deal will lead to complete elimination of about tariffs in about 4,000 products, the cuts will be spread over several phases. Duty cuts on sensitive farm products like tea and palm oil will not be slashed completely due to sensitivities in the domestic sector.
The contours of the deal because the reason for political opposition- both within and outside the United Progressive Alliance. Senior Members of Parliament and Congress members from southern states had expressed reservation at the FTA. In addition, Kerala Chief Minister VS Achuthanandan had sent a missive to Prime Minister Manmohan Singh, warning him of the adverse impacts of the deal on the fisherman and plantation sector of the state.
Source : Financial Express