India-Asean FTA next casualty of slowdown?
The economic slowdown seems to be prompting the government to go slow on FTA negotiations. This could affect the signing of the India-Asean FTA, which was scheduled to take place on February 26.
By ET Bureau |
NEW DELHI: The economic slowdown seems to be prompting the government to go slow on FTA negotiations. This could affect the signing of the India-Asean FTA, which was scheduled to take place on February 26. There were some indications that the slowdown might have changed the government���s perspective on certain matters with external affairs minister Pranab Mukherjee assuring members in Rajya Sabha about the country���s preparedness in the face of the global slowdown.
In this context, Mr Mukherjee, responding to a question on the Asean FTA, said that it would still take time for negotiations with Asean, a grouping of 10 southeast Asian countries, to be finalised. ���The Asean FTA is still in the negotiations stage. It will take time,������ he said.
But the government had announced late last year that the India-Asean FTA would be signed at the Asean summit which was initially supposed to take place in December. But, the summit was postponed to the end of February due to the political troubles in Thailand. At the same time India, which has been critical of US protectionism, is not keen to send out a wrong message to the world especially after criticising the US for its protectionist tendencies. ``We should not give the wrong signal,������ said Mr Mukherjee.
The decision is expected to be tricky for the government which has to weigh its domestic considerations with its international obligation. Domestically, the UPA government is heading for an election and would be hesitant about pushing free trade agenda at a time when the economy is slowing down and exports have been hit. The government might just leave it up to the next government as the Asean summit would be the last chance for the current regime to sign the deal.
In this context, Mr Mukherjee, responding to a question on the Asean FTA, said that it would still take time for negotiations with Asean, a grouping of 10 southeast Asian countries, to be finalised. ���The Asean FTA is still in the negotiations stage. It will take time,������ he said.
But the government had announced late last year that the India-Asean FTA would be signed at the Asean summit which was initially supposed to take place in December. But, the summit was postponed to the end of February due to the political troubles in Thailand. At the same time India, which has been critical of US protectionism, is not keen to send out a wrong message to the world especially after criticising the US for its protectionist tendencies. ``We should not give the wrong signal,������ said Mr Mukherjee.
The decision is expected to be tricky for the government which has to weigh its domestic considerations with its international obligation. Domestically, the UPA government is heading for an election and would be hesitant about pushing free trade agenda at a time when the economy is slowing down and exports have been hit. The government might just leave it up to the next government as the Asean summit would be the last chance for the current regime to sign the deal.
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