The proposed scope of the review of the free trade agreement between India and ASEAN could include issues like customs procedures, further liberalisation of trade in goods and exchange of data, Parliament was informed. The Association of Southeast Asian Nations (ASEAN)-India trade in goods agreement was signed on August 13, 2009, and entered into force on January 1, 2010.
What is a Free Trade Agreement (FTA)
- The proposed scope of the review could include implementation issues, rules of origin; verification process and release of consignments; customs procedures; to take into account other negotiations on further liberalization of trade in goods; and sharing and exchange of trade data, Commerce and Industry Minister Piyush Goyal said.
- In a separate reply, he said the US has made exploratory requests relating to greater market access for some of their products.
- India has also made similar reciprocal requests for exploring the possibility of greater market access for Indian products.
- A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them.
- Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
- The concept of free trade is the opposite of trade protectionism or economic isolationism.
- In the modern world, free trade policy is often implemented by means of a formal and mutual agreement of the nations involved. However, a free-trade policy may simply be the absence of any trade restrictions.
- A government doesn't need to take specific action to promote free trade. This hands-off stance is referred to as “laissez-faire trade” or trade liberalization.
- Governments with free-trade policies or agreements in place do not necessarily abandon all control of imports and exports or eliminate all protectionist policies.
- In modern international trade, few free trade agreements (FTAs) result in completely free trade.