SAI1A

IN1kCDUC1ICN
1he AgreemenL on SouLh Aslan lree 1rade Area (SAl1A) ls an agreemenL reached on !anuary 6 2004
aL Lhe 12Lh SAA8C summlL ln lslamabad aklsLan lL creaLed a free Lrade area of 16 bllllon people ln
8angladesh 8huLan lndla Maldlves nepal aklsLan and Srl Lanka 1he seven forelgn mlnlsLers of
Lhe reglon slgned a framework agreemenL on SAl1A Lo reduce cusLoms duLles of all Lraded goods Lo
zero by Lhe year 2016
1he SAl1A agreemenL came lnLo force on !anuary 1 2006 and ls operaLlonal followlng Lhe
raLlflcaLlon of Lhe agreemenL by Lhe seven governmenLs SAl1A requlres Lhe developlng counLrles ln
SouLh Asla (lndla aklsLan and Srl Lanka) Lo brlng Lhelr duLles down Lo 20 percenL ln Lhe flrsL phase
of Lhe Lwo year perlod endlng ln 2007 ln Lhe flnal flve year phase endlng 2012 Lhe 20 percenL duLy
wlll be reduced Lo zero ln a serles of annual cuLs 1he leasL developed naLlons ln SouLh Asla (nepal
8huLan 8angladesh and Maldlves) have an addlLlonal Lhree years Lo reduce Larlffs Lo zero lndla and
aklsLan have slgned buL noL raLlfled Lhe LreaLy

C8ILC1IVLS AND kINCILLS
1 1he Cb[ecLlves of Lhls AgreemenL are Lo promoLe and enhance muLual Lrade and economlc
cooperaLlon among ConLracLlng SLaLes by lnLeralla
a) ellmlnaLlng barrlers Lo Lrade ln and faclllLaLlng Lhe crossborder movemenL of goods beLween Lhe
LerrlLorles of Lhe ConLracLlng SLaLes
b) promoLlng condlLlons of falr compeLlLlon ln Lhe free Lrade area and ensurlng equlLable beneflLs
Lo all ConLracLlng SLaLes Laklng lnLo accounL Lhelr respecLlve levels and paLLern of economlc
developmenL
c) creaLlng effecLlve mechanlsm for Lhe lmplemenLaLlon and appllcaLlon of Lhls AgreemenL for lLs
[olnL admlnlsLraLlon and for Lhe resoluLlon of dlspuLes and
d) esLabllshlng a framework for furLher reglonal cooperaLlon Lo expand and enhance Lhe muLual
beneflLs of Lhls AgreemenL
2 SAl1A shall be governed ln accordance wlLh Lhe followlng prlnclples
a) SAl1A wlll be governed by Lhe provlslons of Lhls AgreemenL and also by Lhe rules regulaLlons
declslons undersLandlngs and proLocols Lo be agreed upon wlLhln lLs framework by Lhe ConLracLlng
SLaLes
b) 1he ConLracLlng SLaLes afflrm Lhelr exlsLlng rlghLs and obllgaLlons wlLh respecL Lo each oLher
under Marrakesh AgreemenL LsLabllshlng Lhe World 1rade CrganlzaLlon and oLher
1reaLles/AgreemenLs Lo whlch such ConLracLlng SLaLes are slgnaLorles
c) SAl1A shall be based and applled on Lhe prlnclples of overall reclproclLy and muLuallLy of
advanLages ln such a way as Lo beneflL equlLably all ConLracLlng SLaLes Laklng lnLo accounL Lhelr
respecLlve levels of economlc and lndusLrlal developmenL Lhe paLLern of Lhelr exLernal Lrade and
Larlff pollcles and sysLems
d) SAl1A shall lnvolve Lhe free movemenL of goods beLween counLrles Lhrough lnLer alla Lhe
ellmlnaLlon of Larlffs para Larlffs and nonLarlff resLrlcLlons on Lhe movemenL of goods and any
oLher equlvalenL measures
e) SAl1A shall enLall adopLlon of Lrade faclllLaLlon and oLher measures and Lhe progresslve
harmonlzaLlon of leglslaLlons by Lhe ConLracLlng SLaLes ln Lhe relevanL areas and
f) 1he speclal needs of Lhe LeasL ueveloped ConLracLlng SLaLes shall be clearly recognlzed by
adopLlng concreLe preferenLlal measures ln Lhelr favour on a nonreclprocal basls

INS1kUMLN1S
1he SAl1A AgreemenL wlll be lmplemenLed Lhrough Lhe followlng lnsLrumenLs
1 1rade LlberallsaLlon rogramme
2 8ules of Crlgln
3 lnsLlLuLlonal ArrangemenLs
4 ConsulLaLlons and ulspuLe SeLLlemenL rocedures
3 Safeguard Measures
6 Any oLher lnsLrumenL LhaL may be agreed upon













ASLAN
LS1A8LISnMLN1
1he AssoclaLlon of SouLheasL Aslan naLlons or ASLAn was esLabllshed on 8 AugusL 1967 ln 8angkok
1halland wlLh Lhe slgnlng of Lhe ASLAn ueclaraLlon (8angkok ueclaraLlon) by Lhe loundlng laLhers
of ASLAn namely lndonesla Malaysla hlllpplnes Slngapore and 1halland
8runel uarussalam Lhen [olned on 7 !anuary 1984 vleL nam on 28 !uly 1993 Lao u8 and Myanmar
on 23 !uly 1997 and Cambodla on 30 Aprll 1999 maklng up whaL ls Loday Lhe Len Member SLaLes of
ASLAn
AIMS AND UkCSLS
As seL ouL ln Lhe ASLAn ueclaraLlon Lhe alms and purposes of ASLAn are
1 1o acceleraLe Lhe economlc growLh soclal progress and culLural developmenL ln Lhe reglon
Lhrough [olnL endeavours ln Lhe splrlL of equallLy and parLnershlp ln order Lo sLrengLhen Lhe
foundaLlon for a prosperous and peaceful communlLy of SouLheasL Aslan naLlons
2 1o promoLe reglonal peace and sLablllLy Lhrough abldlng respecL for [usLlce and Lhe rule of
law ln Lhe relaLlonshlp among counLrles of Lhe reglon and adherence Lo Lhe prlnclples of Lhe
unlLed naLlons CharLer
3 1o promoLe acLlve collaboraLlon and muLual asslsLance on maLLers of common lnLeresL ln
Lhe economlc soclal culLural Lechnlcal sclenLlflc and admlnlsLraLlve flelds
4 1o provlde asslsLance Lo each oLher ln Lhe form of Lralnlng and research faclllLles ln Lhe
educaLlonal professlonal Lechnlcal and admlnlsLraLlve spheres
3 1o collaboraLe more effecLlvely for Lhe greaLer uLlllsaLlon of Lhelr agrlculLure and lndusLrles
Lhe expanslon of Lhelr Lrade lncludlng Lhe sLudy of Lhe problems of lnLernaLlonal commodlLy
Lrade Lhe lmprovemenL of Lhelr LransporLaLlon and communlcaLlons faclllLles and Lhe ralslng
of Lhe llvlng sLandards of Lhelr peoples
6 1o promoLe SouLheasL Aslan sLudles and
7 1o malnLaln close and beneflclal cooperaLlon wlLh exlsLlng lnLernaLlonal and reglonal
organlsaLlons wlLh slmllar alms and purposes and explore all avenues for even closer
cooperaLlon among Lhemselves

IUNDAMLN1AL kINCILLS
ln Lhelr relaLlons wlLh one anoLher Lhe ASLAn Member SLaLes have adopLed Lhe followlng
fundamenLal prlnclples as conLalned ln Lhe 1reaLy of AmlLy and CooperaLlon ln SouLheasL Asla (1AC)
of 1976
1 MuLual respecL for Lhe lndependence soverelgnLy equallLy LerrlLorlal lnLegrlLy and naLlonal
ldenLlLy of all naLlons
2 1he rlghL of every SLaLe Lo lead lLs naLlonal exlsLence free from exLernal lnLerference
subverslon or coerclon
3 nonlnLerference ln Lhe lnLernal affalrs of one anoLher
4 SeLLlemenL of dlfferences or dlspuLes by peaceful manner
3 8enunclaLlon of Lhe LhreaL or use of force and
6 LffecLlve cooperaLlon among Lhemselves

ASLAN CCMMUNI1
1he ASLAn vlslon 2020 adopLed by Lhe ASLAn Leaders on Lhe 30Lh Annlversary of ASLAn agreed
on a shared vlslon of ASLAn as a concerL of SouLheasL Aslan naLlons ouLward looklng llvlng ln
peace sLablllLy and prosperlLy bonded LogeLher ln parLnershlp ln dynamlc developmenL and ln a
communlLy of carlng socleLles
AL Lhe 9Lh ASLAn SummlL ln 2003 Lhe ASLAn Leaders resolved LhaL an ASLAn CommunlLy shall be
esLabllshed
AL Lhe 12Lh ASLAn SummlL ln !anuary 2007 Lhe Leaders afflrmed Lhelr sLrong commlLmenL Lo
acceleraLe Lhe esLabllshmenL of an ASLAn CommunlLy by 2013 and slgned Lhe Cebu ueclaraLlon on
Lhe AcceleraLlon of Lhe LsLabllshmenL of an ASLAn CommunlLy by 2013
1he ASLAn CommunlLy ls comprlsed of Lhree plllars namely Lhe ASLAn ollLlcalSecurlLy
CommunlLy ASLAn Lconomlc CommunlLy and ASLAn SocloCulLural CommunlLy Lach plllar has lLs
own 8lueprlnL and LogeLher wlLh Lhe lnlLlaLlve for ASLAn lnLegraLlon (lAl) SLraLeglc lramework and
lAl Work lan hase ll (20092013) Lhey form Lhe 8oadmap for and ASLAn CommunlLy 20092013

ASLAN CnAk1Lk
1he ASLAn CharLer serves as a flrm foundaLlon ln achlevlng Lhe ASLAn CommunlLy by provldlng legal
sLaLus and lnsLlLuLlonal framework for ASLAn lL also codlfles ASLAn norms rules and values seLs
clear LargeLs for ASLAn and presenLs accounLablllLy and compllance
1he ASLAn CharLer enLered lnLo force on 13 uecember 2008 A gaLherlng of Lhe ASLAn lorelgn
MlnlsLers was held aL Lhe ASLAn SecreLarlaL ln !akarLa Lo mark Lhls very hlsLorlc occaslon for ASLAn
WlLh Lhe enLry lnLo force of Lhe ASLAn CharLer ASLAn wlll henceforLh operaLe under a new legal
framework and esLabllsh a number of new organs Lo boosL lLs communlLybulldlng process
ln effecL Lhe ASLAn CharLer has become a legally blndlng agreemenL among Lhe 10 ASLAn Member
SLaLes

INDIA and ASLAN
Slnce lLs sLarL abouL a decade ago Lhe parLnershlp beLween lndla and Lhe AssoclaLlon of SouLh LasL
Aslan naLlons (ASLAn) comprlslng 8runel Cambodla lndonesla Laos Malaysla Myanmar Lhe
hlllpplnes Slngapore 1halland and vleLnam has been developlng aL qulLe a fasL pace
lndla became a secLoral dlalogue parLner of ASLAn ln 1992 MuLual lnLeresL led ASLAn Lo lnvlLe lndla
Lo become lLs full dlalogue parLner durlng Lhe flfLh ASLAn SummlL ln 8angkok ln 1993 lndla also
became a member of Lhe ASLAn 8eglonal lorum (A8l) ln 1996 lndla and ASLAn have been holdlng
summlLlevel meeLlngs on an annual basls slnce 2002
ln AugusL 2009 lndla slgned a lree 1rade AgreemenL (l1A) wlLh Lhe ASLAn members ln 1halland
under Lhe ASLAnlndla l1A ASLAn member counLrles and lndla wlll llfL lmporL Larlffs on more Lhan
80 per cenL of Lraded producLs beLween 2013 and 2016 accordlng Lo a release by Lhe MlnlsLry of
Commerce and lndusLry
ln !anuary 2010 Slngapore Malaysla and 1halland accepLed Lhe l1A on goods 1he oLher seven
ASLAn counLrles are expecLed Lo operaLlonallse Lhe l1A by AugusL 2010
lndla and ASLAn are currenLly negoLlaLlng agreemenLs on Lrade ln servlces and lnvesLmenL 1he
servlces negoLlaLlons are Laklng place on a requesLoffer basls whereln boLh sldes make requesLs for
Lhe openlngs Lhey seek and offers are made by Lhe recelvlng counLry based on Lhe requesLs
lndla has made requesLs ln a number of areas lncludlng Leachlng nurslng archlLecLure charLered
accounLancy and medlclne as lL has a large number of Lngllsh speaklng professlonals ln Lhese areas
who can galn from [ob opporLunlLles ln Lhe ASLAn reglon lndla ls also keen on expandlng lLs
Lelecom l1 Lourlsm and banklng neLwork ln ASLAn counLrles

1rade
1he deepenlng of Lles beLween lndla and ASLAn ls reflecLed ln Lhe conLlnued buoyancy ln Lrade
flgures
lndla's Lrade wlLh ASLAn counLrles has lncreased from uS$ 307 bllllon ln 200607 Lo uS$ 3908
bllllon ln 200708 and Lo uS$ 4334 bllllon ln 200809 uurlng Aprll SepLember 200910 lndla's
Lrade wlLh ASLAn was uS$ 2019 bllllon accordlng Lo daLa released by Lhe MlnlsLry of Commerce
and lndusLry
ln 200809 lndlas exporLs Lo ASLAn LoLalled uS$ 1914 bllllon uurlng Aprlluecember 200910
lndla exporLed goods worLh uS$ 128 bllllon Lo ASLAn accordlng Lo daLa released by Lhe MlnlsLry of
Commerce and lndusLry
lndla lmporLed goods worLh uS$ 263 bllllon ln 200809 from ASLAn uurlng Lhe perlod Aprll
uecember 200910 lndlas lmporLs from ASLAn LoLalled uS$ 1809 bllllon accordlng Lo daLa
released by Lhe MlnlsLry of Commerce and lndusLry