India Free Trade Agreement With Malaysia

ASEAN-India trade grew by more than 22% per year between 2005 and 2011. Trade between India and ASEAN increased by more than 37 per cent in 1964-2002 to $79 billion, more than the target of $70 billion set in 2009. [8] India has a Schedule of Commitments (SOC) of 8 ASEAN member countries and a separate SOC for Indonesia and the Philippines. Malaysia has already signed and implemented 7 bilateral free trade agreements with Japan, Pakistan, India, New Zealand, Chile, Australia and Turkey. At the ASEAN level, Malaysia has concluded 6 regional free trade agreements with the ASEAN Free Trade Agreements (AFTA), China, Korea, Japan, Australia, New Zealand and India. Recognizing this trend and recognizing the economic potential of closer ties, the two sides recognized the opportunities to deepen trade and investment relations and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN-India Free Trade Area (FTA). [7] In the tourism sector, the number of visits from ASEAN to India in 2006 was 277,000, while the number of visits from India to ASEAN was 1.985 million in 2008. At the sixth ASEAN-India Summit held in Singapore on 21 November 2007, India proposed to set a target of one million tourist arrivals from ASEAN to India by 2010. The Second Meeting of ASEAN and India Tourism Ministers (ATM+India), on 25 January 1 January 2010, in Bandar Seri Begawan, responded favourably to India`s proposal to develop a tourism cooperation agreement between ASEAN and India and invited the ASEAN-India Tourism Working Group to continue the discussion and preparation of the draft agreement. The ministers also supported the establishment of the ASEAN Tourism Promotion Chapter in Mumbai, an important cooperation platform for the ASEAN National Tourism Organisation (NTOs), to market Southeast Asia to Indian consumers, while creating mutual awareness between ASEAN member states and India. Before the signing of the agreement, Kerala Chief Minister V.S. Achuthanandan led a delegation to the Indian Prime Minister to protest against the free trade agreement.

The state of Kerala is an important exporter in the domestic export of plantation products. It fears that cheap imports of rubber, coffee and fish will reduce domestic production and have a negative impact on farmers and, ultimately, their economy. [13] Kerala has already experienced a flood of its market of cheap imports under the 2006 South Asia Free Trade Agreement. Since then, Sri Lanka`s cheap coconuts and Malaysian palm oil have hampered Kerala coconut cultivation. [13] Considered preferably with Internet Explorer 10 and above with the 1280 x 800 resolution, ASEAN and India signed on August 13, 2009, after six years of negotiations in Bangkok, the ASEAN-India Trade in Goods (TIG) agreement. The ASEAN-India-WIG Agreement entered into force on 1 January 2010. At the 7th ASEAN-India Summit in Cha-am Hua Hin, Thailand, on 24 October 10, 2009, it was agreed to review the bilateral trade target of $70 billion, which is expected to be achieved over the next two years, indicating that the initial target of $50 billion set in 2007 may soon be exceeded. In 2008, the total volume of ASEAN-India trade amounted to $47.5 billion. ASEAN exports to India amounted to $30.1 billion, an increase of 21.1% over 2007. India`s imports from ASEAN amounted to $17.4 billion, an increase of 40.2% over 2006.

With regard to foreign direct investment (FDI), India`s inflow to ASEAN member states amounted in 2008 to $476.8 million, representing 0.8% of total foreign direct investment in the region. . . .