PM may seek consensus for early execution of FTA Friday, January 12, 2007 06:15 [IST]
New Delhi: With India
and the ASEAN clearing a major roadblock to a proposed free trade agreement,
Prime Minister Manmohan Singh is expected to seek a broad consensus for its
early implementation during the India-Asean Summit in Philippines on Sunday.
After tough negotiations spearheaded by Commerce Minister Kamal Nath in the
Philippine city of Cebu in the run-up to Singh's meeting with Asean leaders,
India's proposal for maintaining a 'negative list' of 490 items with trade
coverage not exceeding five per cent by both sides was accepted by the
grouping.
Implementation of the FTA was to have begun on January one, 2006 but was
deferred by a year due to differences on a number of issues like rules of
origin, 'sensitive list' and modalities for tariff reduction and elimination.
India
had in December 2005 tabled a sensitive list of 1,414 tariff lines. This was
opposed by Asean which strongly contended that there should be at least 90 per
cent trade coverage in the normal track.
New Delhi has
already offered proposal for tariff concessions providing 'satisfactory' market
access to Asean countries. India
wants the ten-member grouping to provide reciprocal market access for its
exports.
Officials said it was agreed that negotiators would meet and thrash out the
remaining outstanding issues 'preferably' by July this year.
The Prime Minister leaves tomorrow for Cebu
where he will also attend the second East Asia Summit. He will be accompanied
by wife Gursharan Kaur, National Security Adviser M K Narayanan and top
officials.
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