KUALA LUMPUR: Asean is hoping to conclude the Asean-India Trade in Goods Agreement (Aitiga) review this year, while India has expressed concerns over the slow progress of the review.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic) said the Aitiga, which was signed in 2009 and enforced in 2010, is a key pillar in economic relations between Asean and India.
“This agreement laid the foundation for the significant growth in trade that we have witnessed. However, a decade on, the world has changed, and so must our agreement.
“The ongoing review of Aitiga is a strategic opportunity to modernise and upgrade our economic partnership for the realities of today and tomorrow,” he said when chairing the Asean Economic Ministers-India Consultation yesterday.
“We recall that our leaders have mandated us to expedite the review of Aitiga to be substantially concluded in 2025. In line with that target, Asean sees the review exercise as a chance to incorporate lessons learnt over the past 13 years and to upgrade our agreement with provisions that address current trade practices.
“It also means aligning the Aitiga with initiatives such as Asean’s economic integration efforts and India’s ‘Act East’ policy, so that our trade agreement complements broader regional supply chain connectivity,” Tengku Zafrul added.
He said the global trade landscape is shifting rapidly, presenting both opportunities and challenges.
“In the midst of this strategic rebalancing, closer economic integration between Asean and India can serve as a stable anchor of growth and a vital source of resilience amid global uncertainties.
“Indeed, we face common challenges, from safeguarding supply chain resilience and food security to navigating technological disruptions.
“By working together, we can transform these challenges into shared opportunities for sustainable and inclusive growth,” he said.
The two-way merchandise trade between Asean and India has surpassed US$100bil (RM422bil) while bilateral trade between Asean and India hit around USD$106.93bil (RM451.30bil) in 2024, a significant jump from US$60.17bil (RM253.91bil) in 2015.
At a press conference at the conclusion of the 57th AEM in Kuala Lumpur yesterday, Tengku Zafrul said Asean remains committed to completing the review in 2025 despite several “challenges and criticism”.
“Asean has put forward a balanced package in good faith, underscoring its determination to work with India towards a modern business-friendly and future-ready agreement,” Tengku Zafrul said.
“Moving forward, Asean maintains an optimistic outlook through constructive engagement and mutual trust the upgraded Aitiga will serve as a catalyst for deeper integration.”
Meanwhile, Indian Union Minister of State for Commerce and Industry Jitin Prasada expressed concern over the slow progress of the review of the Aitiga.
“On the trade front, India remains seriously concerned about the limited progress of the review of the Aitiga,” he said.
“Asean and India are neighbours and partners in the global south. Both represent a rapidly growing region in the world.
“We aspire to achieve a bright future for more than two billion people,” added Prasada.
