In a move that poses a fresh hurdle to the India ASEAN Trade Deal, New Delhi and members of the Association of Southeast Asian Nations (ASEAN) are trying to draw up new changes to their longstanding free trade pact ahead of the Manila ASEAN Summit.
However, talks are centered on market access, rules of origin and unremoved trade barriers. The review has been discussed many times, but has yet to be finalized, with concerns about the speed of regional economic cooperation.
India-ASEAN Trade Deal Review Faces Fresh Delays
ASEAN-India Trade in Goods Agreement (AITIGA) signed in 2009 is under review. Officials, during the negotiations on October 6-9 in Jakarta, requested a speedy movement for the remaining chapters. The India’s Ministry of Commerce has said that the next formal review meeting is in January 2027.
Trade Deficit and Market Access Complicate Negotiations
The growing trade deficit between India and ASEAN is a big worry. This imbalance is said to have reached $51.54 billion in 2025–26 and is increasing calls for fairer market access. Another key issue to be settled between the two parties is customs procedures and product-origin requirements without jeopardizing the existing regional supply chains.
Rules of Origin Remain a Major Negotiating Challenge
Goods are eligible for preferential tariff benefits under the agreement based on rules of origin. India demands enhanced protection against the possible misuse; while the members of the ASEAN region demand assured trading environments. These provisions were also discussed during the October negotiations, but there are outstanding issues.
Manila Summit Could Renew India-ASEAN Trade Momentum
There is yet another chance for political engagement at the upcoming Manila summit, though a final agreement is not likely soon. The discussion at the ASEAN-India Economic Ministers’ Consultation earlier, reiterated support for negotiations. Compromises will be crucial to make to ensure meaningful progress towards balancing market protection and regional integration.
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