India-ASEAN FTA

• 09 Mar 2024

Thailand raises objections to India's CAROTAR regulations during the India-ASEAN FTA review, highlighting trade concerns and growing Chinese influence.

• CAROTAR aimed at verifying rules of origin under FTAs to prevent misuse of benefits.
• India seeks to boost exports to ASEAN countries amidst growing trade gap.
• India-ASEAN trade gap in FY23 surged to $43.57 billion, up over 40% from FY22.
• Rising investments in ASEAN nations and PLI schemes contribute to trade gap.
• Chinese influence in Thailand grows, impacting trade dynamics.
• India seeks better market access and streamlining of non-tariff barriers.
• Product Specific Rules (PSRs) negotiation aims to simplify FTA utilization.
• India's high tariffs contribute to wider trade deficit with ASEAN countries.
• ASEAN enjoys greater tariff preferences in Indian market due to high tariffs and fewer FTAs.