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Free Trade Agreement: ASEAN

ASEAN:

 

India is in discussion with the 10-nation bloc ASEAN for initiating the review of the FTA (free-trade agreement) in goods between the two regions to seek more market access for domestic products.

  • Free Trade Agreement (FTA) is a pact between two or more nations to reduce barriers to imports and exports among them.
  • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
  • The concept of free trade is the opposite of trade protectionism or economic isolationism.
  • The Association of Southeast Asian Nations is a regional organization which was established to promote political and social stability amid rising tensions among the Asia-Pacific’s post-colonial states.
  • The motto of ASEAN is “One Vision, One Identity, One Community”.
  • ASEAN Secretariat – Indonesia, Jakarta.
  • Established in 1967 with the signing of the ASEAN Declaration (Bangkok Declaration) by its founding fathers.
  • Founding Fathers of ASEAN are: Indonesia, Malaysia, Philippines, Singapore and Thailand.
  • Ten Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
  • Against the backdrop of aggressive moves by China, including the Ladakh standoff, India placed the ASEAN at the centre of India’s Act East policy and held that a cohesive and responsive ASEAN is essential for security and growth for all in the region.
  • ASEAN is necessary for the success of the Security And Growth for All in the Region (SAGAR) Vision.
  • The region is significant for diversification and resilience of supply chains for post-Covid-19 economic recovery.
  • It is India’s 4th largest trading partner with about USD 86.9 billion in trade.

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