India has been pursuing a free trade area (FTA) deal with ASEAN countries for quite some time. Until a few weeks ago, the prospect of FTA seemed to be very bright but now all we can see is dark cloud hovering all over. India and ASEAN countries- both are keen to have a FTA deal but the problem seems to lie in India's reluctance to open its market fully. India wants to protect a number of products and have given a list of 1,400 items and then a revised list of 856 items to ASEAN courtiers. On the other hand, ASEAN countries are annoyed with this and both the parties have reached to a dead-end.
In the media, I could see two kinds of reports. On the one hand, Malaysian Trade and Industry Minister Rafidah Aziz is reported to have said that FTA talk with India had been suspended while a spokeswoman for the Indian Commerce and Industry Ministry said that the process is going on. Anyway, there is no doubt that the prospect of FTA with ASEAN does not look good for India. Indian decision makers must understand that ASEAN leaders are themselves very tough campaigners and would not compromise unless they find something attractive in it.
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