Context:
India and the ASEAN countries reached an agreement on Monday to review their free trade pact for goods by 2025.
ASEAN-Indian Free Trade Area (AIFTA) includes – Trade in Goods Agreement, Trade in Services Agreement and Investment Agreement.
Free Trade Agreement (FTA):
- An FTA is a collaborative agreement between countries or regional blocs, designed to remove trade barriers through mutual negotiations, all with the goal of boosting trade.
- It encompasses various sectors including goods, services, investment, intellectual property, competition, government procurement etc.
- This concept of free trade is the opposite of trade protectionism or economic isolationism.
- Categories –
- Preferential Trade Agreement
- Comprehensive Economic Cooperation Agreement (CECA)
- Comprehensive Economic Partnership Agreement (CEPA)
India and FTAs:
- India has signed 13 FTAs – Sri Lanka, Nepal, Bhutan, Thailand, Singapore, ASEAN, South Korea, Japan, Malaysia, Mauritius, UAE, Australia, South Asian Free Trade Area (SAFTA).
- 6 PTAs –
- Asia Pacific Trade Agreement (APTA)
- Global System of Trade Preferences (GSTP)
- SAARC Preferential Trading Agreement (SAPTA)
- India-Afghanistan PTA
- India-MERCOSUR PTA
- India-Chile PTA
ASEAN-India Trade in Goods Agreement (AITIGA) is a free trade area among the 10 member states of the Association of Southeast Asian Nations (ASEAN) and India that came into force from January 2010. Under the pact, two trading partners set timelines for eliminating duties on the maximum number of goods traded between the two regions.
Source: The Hindu
Previous Year Question
Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the ‘free-trade partners’ of ASEAN?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6
Answer: (c)
