ASEAN member nations Indonesia, the Philippines and Cambodia are likely to ratify the long-pending free trade agreement (FTA) on services and investment with India by next month that will pave way for its full implementation by the 10-nation bloc, considered one of the world’s fastest growing regions.
Many Association of Southeast Asian Nations (ASEAN) member countries, including Singapore, have been impressing upon the three nations to ratify the agreement at the earliest, and India has been conveyed that the process will be completed by December, government sources said.
The FTA in services and investments came into force from July in countries which have ratified it.
Besides the three countries, other members of ASEAN are Brunei, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam. Laos has ratified the services part of the pact but it is yet to clear the investment component.
ASEAN is India’s fourth largest trading partner and India in turn is sixth largest trading partner for the bloc. The combined GDP of both sides is $2.57 trillion. Both India and ASEAN have been seeking greater economic engagement and set a target of $100 billion in trade by 2015.
“We are confident that Indonesia, the Philippines and Cambodia will ratify the pact by December. Laos is yet to implement the investment part of the pact and we are hopeful it will be done soon,” said a senior External Affairs Ministry official handling issues relating to ASEAN.
Full implementation of the FTA on Services and Investment is likely to scale up economic engagement between the two sides significantly.
Published 22 November 2015, 19:04 IST