India, ASEAN draft economic partnership, anti-terror measures

Asian Economic News, Oct 6, 2003

NUSA DUA, Indonesia, Oct. 5 Kyodo

India and the Association of Southeast Asian Nations (ASEAN) are setting out measures to enhance their comprehensive economic partnership and boost cooperation to combat international terrorism, ASEAN documents and officials said here Sunday.

''We have already solved all differences between us and hopefully the documents can be signed when leaders of ASEAN and India meet at their summit here,'' said Makarim Wibisono, director general of the Asia, Pacific and Africa bureau at the Indonesian Foreign Ministry.

''This is good progress since the relationship between ASEAN and India only started in the ASEAN summit in Phnom Penh last year,'' Makarim added.

The first cooperation is expected to be detailed in the so-called ASEAN-India Joint Declaration for Cooperation to Combat International Terrorism in which both sides will ''improve intelligence and terrorist financing information sharing on counterterrorism measures.''

According to a copy of the draft declaration obtained by Kyodo News, they will also ''enhance liaison relationships amongst their law enforcement agencies'' and ''strengthen capacity-building efforts through training and education.''

The second document, titled Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the Republic of India, will lay out measures to be taken by both sides to work toward an ASEAN-India Regional Trade and Investment Area (RTIA).

Along with the first document, the economic cooperation agreement will be signed Wednesday afternoon by ministers of ASEAN and India, witnessed by their heads of state.

Under the agreement, negotiations between the two sides on the agreement for tariff reduction or elimination for trade in goods are expected to commence in January 2004 and be concluded by June 30, 2005, in order to establish the ASEAN-India FTA.

The draft agreement, obtained by Kyodo News on the sidelines of the ASEAN senior officials meeting, said negotiations on rules of origin for trade in goods and the modality for tariff reduction and elimination will be concluded not later than July 31, 2004.

''For trade in services and investments, the negotiations on the respective agreements shall commence in 2005 and be concluded by 2007,'' the draft says.

The draft specifies schedules to gradually reduce or eliminate most-favored-nation tariff rates of the parties' certain products over a period of 2006 to 2011 for India and Brunei, Indonesia, Malaysia, Singapore and Thailand and 2006 to 2016 for India and the Philippines.

Meanwhile, 2016 to 2011 will be applied for India and new ASEAN member countries.

ASEAN's original members are Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, while the newer members are Cambodia, Laos, Myanmar and Vietnam.

Two-way trade between India and ASEAN has reached $11 billion, according to Indian Ambassador to Jakarta Hemant Krishan Singh, who added the figure is expected to nearly triple to $30 billion by 2007.