Commerce and Industry Minister Shri Piyush Goyal co-chairs 21st ASEAN-India Economic Ministers meeting in Lao PDR

Shri Piyush Goyal, Commerce and Industry Minister during the 1st day of his visit to Vientiane, Lao PDR co-chaired the 21st ASEAN-India Economic Ministers (AEM-India) meeting alongwith H.E. Malaithong Kommasith, Minister of Industry and Commerce of Lao PDR. The Economic Ministers or their representatives from all the 10 ASEAN countries viz. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam participated in the meeting. Democratic Republic of Timor-Leste joined the Meeting as an observer.

The Ministers reviewed the trade and investment relations between India and ASEAN and reaffirmed their commitment to further strengthen the relations. India and ASEAN registered a bilateral trade of USD 120.9 billion in 2023-24 with ASEAN accounting for 10.9% of India’s global trade.

The Ministers in particular took note of the progress in negotiations for the review of ASEAN-India Trade in Goods Agreement (AITIGA). Minister Goyal in his intervention stressed on the need for addressing injury to industries from the existing FTA and the inequitable tariff liberalisation during the review. He also cited India's ongoing efforts of integrating with other economies through FTAs and highlighted the urgency in upgrading AITIGA which otherwise may lead to diversion of bilateral trade to other regions.

The Ministers reiterated the commitment to ensure that the outcome of the review should be mutually beneficial and commercially meaningful and will make the AITIGA more effective, user-friendly, simple, and trade facilitative for businesses. The Ministers encouraged the AITIGA Joint Committee to expedite the negotiations to conclude the review in 2025. 

The review of the AITIGA is a long-standing demand of Indian industry and India is looking forward to an upgraded AITIGA which will address the current asymmetries in bilateral trade and will make trade more balanced and sustainable.

Minister Goyal reiterated India's request for setting up of Joint Committees under the two separate Agreements on Services and Investment, signed in 2014, to review the implementation of these Agreements.

On the sidelines of AEM-India meeting, Minister Goyal had a productive bilateral meeting with Mrs. Helene Budliger Artieda, Secretary for Economic Affairs, Switzerland. Both sides discussed the progress in ratification of India-EFTA Trade and Economic Partnership Agreement signed on 10th March 2024 and discussed the way forward in facilitating US$100 billion FDI commitment by the EFTA States under the FTA.

Minister Goyal also interacted with the FICCI led industry delegation from India which was visiting Vientiane, Laos to brief the ASEAN-India Economic Ministers on the activities of ASEAN-India Business Council (AIBC). FICCI serves as the AIBC Secretariat from the Indian side. The delegation from AIBC ASEAN also met Minister Goyal separately. Industry from both sides briefed the Minister on their perspective of bilateral trade and their expectations from review of AITIGA.