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Important to ensure trade agreements are real and not illusory: R Chandrashekhar |
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NEW DELHI: Emphasising on creating mutually beneficial trade agreements between India and ASEAN, Nasscom President R Chandrashekhar today said that it is important to ensure that trade agreements are "for real and not illusory".
Nasscom represents the over $ 140 billion IT-ITeS industry.
Chandrashekhar said diagnosis of the problems affecting trade between the regions needs to be an honest effort so as to ensure a real solution to it.
"It is very important to ensure that in trade agreements the access is for real and is not illusory," he told PTI on the sidelines of the business session of the Delhi Dialogue VII, organised by Ministry of External Affairs, ASEAN India and industry body FICCI here.
He further said: "The access that India gives in terms of goods as well as a 1.2 billion-strong market should be reciprocated. India should get the same treatment in terms of services, which is a great business strength of the country."
Earlier during the day, Ministry of External Affairs Secretary (East) Anil Wadhwa said India-ASEAN trade was well below potential, but the regional comprehensive economic partnership (RCEP) pact -- expected to conclude later this year -- will help boost trade to $ 200 billion by 2022.
"The FTA in goods has helped us but now we have signed the comprehensive FTA, which is going to conclude later on this year. Only three countries have ratified from ASEAN. We are waiting for the rest of the ratifications. We think it (conclusion of RCEP) might be towards October".
Implementation of the ASEAN-India Free Trade Agreement (FTA) in Goods was signed in 2009. It translated into increase in bilateral trade, which rose from under $ 44 billion in 2009-10 to over $ 74 billion in 2013-14.
RCEP is a proposed comprehensive free trade pact among 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Malaysia, Singapore, Thailand, and Vietnam, and six partners with which they have free trade agreements (FTAs), including Australia, China, India, Japan, South Korea and New Zealand.
The pact seeks to include goods, services, investments, competition and intellectual property and is targeted to be concluded this year.
"The trade level is below our potential and we hope that the FTA in Goods, when reviewed, will lead to better efficacy and results.
"The signing of the agreements on Trade in Services and Investment last September and their expected entry into force later this year will give a much-needed boost to our economic engagement. It will hopefully also rectify the trade and investment balance, which is currently somewhat in favour of ASEAN," Wadhwa said.
Asked about India's expectations from the discussions with ASEAN countries in the Delhi Dialogue, Wadhwa said: "There are 2 or 3 main outcomes that we expect. We want to see some proposal about future direction and trade between India and ASEAN countries."
"We also want to hear something about the services and investment agreement and how both sides can take advantage of that. We want to put this in our vision document 2016-21, which we are drawing up with ASEAN and which is in the final stages," he said.
Source : economictimes.indiatimes.com
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