Wednesday, August 9 2006 10:22 Hrs (IST) - World Time -

Kuala Lumpur: A free-trade agreement (FTA) between India and Southeast Asian nations is still on as leaders of the respective countries are committed to the negotiations, chief of the regional grouping Asean said yesterday (Aug 8,2006).

Implementation of FTA, initially scheduled for January 1, 2007, was delayed following some differences over tarrifs.

"It (the FTA) is still on. It is just that we feel the respective positions on the table have not progressed from the last meeting. So, no point in having a meeting if we don't have new things to offer," Asean Secretary-General Ong Keng Yong said, noting that the 10-member grouping should complete negotiations on FTA with India by 2007.

Malaysia's International Trade Minister Rafidah Aziza had said on the sidelines of last month's Asean Regional Forum (ARF) meeting here that the Asean had suspended FTA talks with India. Minister of State for Defence Rao Inderjit Singh, who represented India for the ARF, had expressed surprise and noted that the talks had not been called off.

Ong said Asean, which comprises of Malaysia, Brunei, Singapore, Indonesia, Vietnam, Myanmar, Philippines, Thailand, Cambodia and Laos, was planning to meet Indian officials during the coming Asean Economic Ministers Meeting.

"They came in with an exemption list for 1,414 items. Now, it has come down to 854 items but our target is only 400 items (about 40 items per Asean country). It all depends on the bargaining," Ong said.

"How many sensitive items Malaysia has that you don't want to put on the trade with India? It will be very few," he said,

"Countries like Singapore and Brunei don't have a lot of problems with this because theirs are already open trade," he said.