ASEAN Post-Ministerial Conference with India
The 58th ASEAN Foreign Ministers’ Meetings were held in Kuala Lumpur, Malaysia, on July 10, 2025. These meetings coincided with significant trade negotiations between India and ASEAN countries.
Trade Negotiations and AITIGA Review
- India is engaging in talks with ASEAN countries to review the ASEAN-India Trade in Goods Agreement (AITIGA).
- The AITIGA, signed in 2009, was criticized for being unfavorable to India and referring to ASEAN as the “B-team of China.”
- In July 2025, India agreed to expedite the AITIGA review after meetings between Indian and Malaysian leaders.
Impact of U.S. Tariffs
- India is dealing with new U.S. tariffs of 25% imposed on Indian goods.
- The government is simultaneously negotiating with the European Union, Australia, and New Zealand for other trade agreements.
- U.S. tariffs have been less on India's Asian rivals, including ASEAN countries, which face about 19% tariffs.
Trade Imbalance with ASEAN
India faces a growing trade deficit with ASEAN countries:
- Exports to ASEAN: Grew from $34.2 billion in 2017-18 to $39 billion in 2024-25, at an average annual growth rate of 1.7%.
- Imports from ASEAN: Increased significantly from $47.1 billion to $84.2 billion in the same period, with a 7.5% annual growth rate.
- Current trade deficit with ASEAN: $45.2 billion as of 2024-25.
Concerns and Issues
- India has raised concerns over the "rules of origin" related to Chinese goods entering via ASEAN countries.
- The inequality in tariff lines is also an issue, with India opening 71% of its tariff lines compared to lower percentages by ASEAN countries, such as 41% by Indonesia.
RCEP and India's Position
ASEAN countries were instrumental in the RCEP, a 15-nation free trade agreement, from which India withdrew in 2019.
