1. General Information
Full name: Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the Republic of India (and its implementing agreements).
Abbreviation: AIFTA (ASEAN–India Free Trade Agreement).
In practice, AIFTA is a collective term referring to the Free Trade Area formed by three component agreements:
- ASEAN–India Trade in Goods Agreement (AITIG).
- ASEAN–India Trade in Services Agreement.
- ASEAN–India Investment Agreement.
Participating Members
- ASEAN Member States (10): Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.
- Dialogue Partner: Republic of India.
Signing and Entry into Force
| Agreement | Date of Signing |
Entry into Force
|
| Framework Agreement on Comprehensive Economic Cooperation | 08/10/2003 | – |
| ASEAN–India Trade in Goods Agreement (AITIG) | 13/8/2009 | 01/01/2010 |
| ASEAN–India Trade in Services Agreement | 20/11/2014 | 01/07/2015 |
| ASEAN–India Investment Agreement | 20/11/2014 | 01/07/2015 |
Negotiation Background and Rationale for the FTA
Background: The ASEAN–India dialogue partnership was established in 1992. The need for deeper economic cooperation arose from India’s large market potential (as one of the world’s largest and most populous economies) and ASEAN’s growing strategic position in the Asia–Pacific region.
Rationale:
- Enhancing Market Access: Eliminate or substantially reduce tariffs on goods (India committed to remove tariffs on up to 90% of tariff lines) and lower non-tariff barriers, facilitating ASEAN exports to the Indian market.
- Promoting Investment and Services: Establish a transparent and stable legal framework to foster investment and liberalise trade in services between both sides.
- Strengthening Strategic Partnership: Demonstrate the political commitment of both parties to deepen their economic and strategic ties in the Asia–Pacific region.
2. Scope and Key Commitments
The AIFTA is a comprehensive agreement covering Trade in Goods, Trade in Services, and Investment, each detailed in separate legal instruments.
Main Chapters of the ASEAN–India Trade in Goods Agreement (AITIG)
| Chapter | Title | Key Content |
|---|---|---|
| 1 | General Provisions | Define the scope and objectives. |
| 2 | Elimination of Tariffs | Schedule for tariff reduction and elimination under the following lists: Normal Track (NL); Sensitive List (SL); Highly Sensitive List (HSL); and Exclusion List (ECL). |
| 3 | Rules of Origin | Establish origin criteria: minimum Regional Value Content (RVC) of 35% and/or Change in Tariff Heading (CTH) at the 4-digit HS level. |
| 4 | Other Measures | Address non-tariff measures and technical standards. |
| 5 | Administrative Provisions | Specify administrative and procedural arrangements. |
| 6 | Consultations | Provide mechanisms for consultations and dispute avoidance. |
| 7 | General Exceptions | Outline exceptions to obligations. |
Notes:
- Trade in Services and Investment are governed by separate agreements, which include market access and investment protection commitments.
- The Certificate of Origin under AIFTA is issued using Form AI.
3. References and Official Sources
Full Texts and Main References:
- Official website of the ASEAN Secretariat – provides the English versions of the agreements.
- Website of the Ministry of Commerce and Industry, India.
- Related agreements: ASEAN–India Trade in Goods Agreement, ASEAN–India Trade in Services Agreement, and ASEAN–India Investment Agreement.
Implementation in Viet Nam:
Viet Nam FTA Portal (Ministry of Industry and Trade): Provides summaries of commitments, tariff reduction schedules for Viet Nam and India. Website: https://vntr.moit.gov.vn/
Regulatory Documents in Viet Nam:
- Government Decree on Viet Nam’s Special Preferential Import Tariff Schedule for implementing the ASEAN–India Trade in Goods Agreement (e.g., Decree No. 122/2022/NĐ-CP for 2022–2027).
- Circular of the Ministry of Industry and Trade on Rules of Origin (e.g., Circular No. 15/2010/TT-BCT).
Vietnam Customs: Provides tariff look-up under AIFTA and guidance on using the Certificate of Origin Form AI.
WTO and Integration Center – VCCI: Provides analysis, summaries, and guidelines on using AIFTA Form AI.
See other FTAs:
