Six years after negotiations opened, the ten members of the Association of Southeast Asian Nations (ASEAN) announced that they will sign a free trade agreement with India during their next summit in Bangkok in December.

After the European Union, the USA and China, ASEAN will become the biggest economic partner of India. Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Laos, Myanmar, Cambodia, Singapore and Brunei should as a result see an increase in their trade with India. For the signatories, the agreement represents a counter-weight to America and Europe.

The countries expect $50 billion in annual trade from 2010, an increase of $10 billion on 2008. More than 4,000 products will be affected, representing more than 80% of transactions. Equipment, chemical products and electronics are included as are textiles, which is one of the major markets for both sides. The range of included items could be expanded in 2016.

By Jonathan Fulwell (Source: Matthieu Guinebault)