Cloud over Asean trade pact review

The planned makeover of India's 14-year-old goods trade pact with Asean may take longer than expected as members of New Delhi's fourth largest trading partner press to negotiate tariffs individually, two people aware of the development said.

- Dhirendra Kumar & Rhik Kundu

The review, which was expected to be finalized at next month's Jakarta meeting of India and the Association of South East Asian Nations, has stalled since India's offer of a unified duty structure does not find favour among Asean members, two people aware of the development said.

"This shift in Asean's approach comes in response to India's proposal for a unified tariff schedule for all member states a suggestion that has met with resistance from several countries within the bloc," one of the two people cited above said on the condition of anonymity.

While the trade agreement has boosted economic ties, differing priorities between India and Asean members could prolong the review, leaving the future of the pact uncertain.