CALL TO HASTEN INDO-ASEAN FTA TO FACE GLOBAL RECESSION

NEW DELHI, March 6 (Bernama)-- A top Indian trade body wants the Indo-Asean
Free Trade Agreement (FTA) signing to be hastened to counter rising
protectionism and prosper trade ties between the two economies.

India's Associated Chambers of Commerce and Industry (ASSOCHAM) said the
trade pact was vital as the world's major economies -- the European Union, Japan
and the United States -- are under severe recession and a speedy revival was out
of sight.

The three economies control almost 60 percent of the world gross domestic
product, 35 percent of world exports and 44 percent of world imports.

"Such a high level of concentration of exports to these countries has
alarmingly dampened the export growth in India and ASEAN member countries.

"To mitigate the sagging trade with their recession ridden major trading
partners in the US, the EU and Japan, the India-ASEAN Free Trade Agreement is
highly imperative to counter rising protectionism and prosper economic
co-operation for both the economies," D. S Rawat, the ASSOCHAM secretary general
said in a statement.

India was scheduled to seal the trade agreement with the 10-member grouping
of the Southeast Asian nations at the recently concluded Asean Summit in
Thailand last month.

But India delayed the signing with several tariff cuts yet to be sorted
out by both parties under the bilateral agreement.

ASSOCHAM, with its 200,000-strong industry members, suggested India should
pitch for stronger economic ties to trade in services with Asean.

According to ASSOCHAM, India had global competitiveness in service exports
with a share of 2.73 percent (ranked 9th) in world exports of commercial
services, while ASEAN is a net importer of the same.

--BERNAMA