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Daily Current Affairs – 2020
Topic: For Prelims and Mains
India-ASEAN Free Trade Pact in Goods & Eurasian Economic Union
14th September 2019
Why in News? India and 10-member bloc of South-East Asian nations have agreed to review their free trade agreement, signed in 2009, to make it more business-friendly and boost economic ties.
About India-ASEAN Free Trade Pact in Goods
The India-ASEAN trade in goods pact came into force from January 2010.
Under the pact, two trading partners set timelines for eliminating duties on the maximum number of goods traded between the two regions.
The 10 ASEAN members are Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam.
The bilateral trade between the two sides has increased to $80.8 billion in 2018 from $73.6 billion in 2017.
Issues with the current Pact :
India has been seeking to renegotiate the terms of the FTA as there’s no review or exit clause in it.
As per an assessment, the FTA has led to a 250 per cent increase in India’s trade deficit with ASEAN nation.
About the Review :
India and 10-member bloc of South-East Asian nations have agreed to review their free tradeagreement, signed in 2009, to make it more business-friendly and boost economic ties.
The two sides also decided to constitute a joint committee for this purpose, according to a statement.
The ministers agreed to initiate the review of the ASEAN-India trade in goods agreement to make it more user-friendly, simple, and trade facilitative for businesses,” a joint media statement issued after the meeting said.
After the ASEAN-India FTA, the trade deficit with these nations increased manifold and various sectors, including agriculture and industry, were badly hit. “Steel, glass, telecom and various other industries are the worst affected due to the pact. The review will help in going towards a more equitable and balanced trade
Eurasian Economic Union :
Why in News?The Eurasian Economic Union is an international organization for regional economic integration. It has international legal personality and is established by the Treaty on the Eurasian Economic Union.
The EAEU provides for free movement of goods, services, capital and labor, pursues coordinated, harmonized and single policy in the sectors determined by the Treaty and international agreements within the Union.
The Member-States of the Eurasian Economic Union are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation.
The Union is being created to comprehensively upgrade, raise the competitiveness of and cooperation between the national economies, and to promote stable development in order to raise the living standards of the nations of the Member-States.
The Supreme Council is the Union’s supreme authority. The Heads of the Member-States form the Supreme Council.
The Intergovernmental Council is a Union’s body consisting of the Heads of the Member-States Governments.
Eurasian Economic Commission is a permanent supranational regulatory body of the Union, with its members appointed by the Council of the Commission and the Board of the Commission.
The core tasks of the Commission are fostering the conditions to support the operation and development of the Union, and drafting proposals in the field of economic integration within the Union.
The Court of the Eurasian Economic Union is the court of justice of the Eurasian Economic Union, which ensures the uniform application of the EAEU Treaty and other Union treaties by the Union Member-States and bodies.