India-Asean FTA to be inked by yearend

The much-awaited India-Asean FTA on services and investments is expected to be inked by the end of 2013. The process of legal scrubbing is over and Asean countries are now in the midst of their internal procedures with regard to the FTA. While it had been expected that the FTA would be inked during the Asean Summit in Brunei Darussalam, it is now expected that the important pact will be signed by December. Prime Minister Manmohan Singh leaves on a four-day trip to Brunei and Indonesia on Wednesday during which he will be participating in the 11th Asean-India Summit and the 8th East Asia Summit in the former’s capital, Bandar Seri Begawan. The PM’s trip to Indonesia will mark his first bilateral visit to the country as PM. Joining him on this visit will be external affairs minister Salman Khurshid and commerce and industry minister Anand Sharma. The efforts to forge closer ties with Asean countries is part of India’s “Look East” policy. At present, there are no less than 26 inter-governmental mechanisms between India and the Asean. The Asean region also holds immense importance for India with Asean-India trade currently standing at $76 billion. It is expected to increase to $100 billion by 2015 and to $200 billion by 2022. As for India’s position on the South China Sea dispute, a matter that is expected to figure at the Asean Summit, Mr Kantha said India’s stand is that the issue has to be resolved peacefully as per international norms and the freedom of navigation should be there as per international laws. He also welcomed moves to adopt a code of conduct by the countries concerned in this regard. The PM will head for Jakarta on October 10 for the Indonesian leg of his tour where he will be meeting other leaders.