The ASEAN-India Free Trade Agreement (AIFTA) was signed on August 13, 2009, with the aim of promoting trade and economic integration between India and the ASEAN region. The agreement has been touted as a significant step towards strengthening the existing trade relationship between the two regions. Under this agreement, both sides have agreed to eliminate tariffs on 90% of the traded goods over a period of time.
The AIFTA tariff schedule is a list of goods that are subject to tariffs under the agreement. The tariff schedule contains details on the duty rates applicable to specific products and their respective HS codes. The HS codes are standardized codes that are used by countries to classify traded goods for customs and statistical purposes. The tariff schedule is intended to provide clarity and predictability to traders when importing or exporting goods.
The AIFTA tariff schedule covers a wide range of products, including agricultural goods, textiles, chemicals, and machinery. For instance, under the agreement, India has agreed to reduce tariffs on crude palm oil imported from the ASEAN region. Similarly, ASEAN countries have agreed to reduce tariffs on certain textile products exported from India. The agreement also includes provisions for protecting intellectual property rights, promoting investment, and facilitating trade in services.
The AIFTA tariff schedule is updated periodically to reflect changes in trade patterns and economic conditions. For instance, in 2017, the tariff schedule was revised to include new products such as auto parts, rubber products, and medical devices. The revised schedule also included provisions for reducing non-tariff barriers to trade, such as customs procedures and technical regulations.
The AIFTA has been instrumental in promoting trade between India and the ASEAN region. According to statistics, bilateral trade between India and ASEAN has increased from $50 billion in 2010 to $96.7 billion in 2019. The agreement has also helped to create new opportunities for businesses and boost economic growth in the region.
In conclusion, the AIFTA tariff schedule is an essential document that provides clarity and predictability to traders when importing or exporting goods under the agreement. The schedule covers a wide range of products and is updated periodically to reflect changes in trade patterns and economic conditions. The AIFTA has been instrumental in promoting trade between India and the ASEAN region, and the agreement is expected to continue to play a vital role in strengthening the existing trade relationship between the two regions.