Home India News India implements FTA on goods with Brunei

India implements FTA on goods with Brunei

By NNN-Bernama,

New Delhi : Taking its FTA with the 10-nation Asean bloc a step further, India has implemented a free trade pact with Brunei Darussalam that slashes import duties on thousands of products, like seafood, chemicals and apparel, Press Trust of India (PTI) reported.

In turn, Brunei Darussalam will also slash import duties on a host of Indian goods.

Now that the trade pact with Brunei Darussalam has come into force, the agreement signed with the Association of Southeast Asian Nations (Asean) bloc in 2009 has become functional with seven member countries.

Besides Brunei Darussalam, the other six countries with which India has operationalised FTAs are Indonesia, Vietnam, Myanmar, Malaysia, Singapore and Thailand.

While India and the Asean grouping signed a Free Trade Agreement (FTA) on goods in August, 2009, it was to be separately notified by New Delhi for each member country.

A notification bringing the FTA with Brunei into effect has been issued by the Central Board of Excise and Customs (CBEC).

India-Brunei bilateral trade was US$453 million in 2009-10.

A Commerce Ministry official said pact with the remaining three Asean members — Cambodia, Laos and the Philippines — are also expected to become functional in the coming months.

India and Asean trade in goods is expected to touch US$70 billion by 2012 from the present US$43.5 billion.

The two are also engaged in negotiations to broadbase the FTA by liberalising the services and investment regime.