Effects of ASEAN Agreement
It was 10 months before the India-ASEAN free trade agreement came into existence. Even though this agreement got signed on August 2009, it came into existence on January 2010. Majority of people’s and farmers representatives were in great tension about this agreement as they feared about the depreciation of their food and cash crops. But in practice the market price of almost all crops increased.
As per he ASEAN agreement, the tax and levies for for export as well as import from India to ten other countries will undergo a phase by phase reduction. In the year 2016 the tax and levies for about 4000 products will become nil.
The other ASEAN countries include Malaysia, Singapore, Indonesia, Myanmar, Brunei, Vietnam, Philippines Laos and Cambodia. Apart from this India has made free trade agreement with North Korea and Japan.
Some products of India are kept preserved from the reach of this agreement to preserve their value. There are 1259 such products.
Before the signing of this agreement the central government got lot of complaint from various states including Kerala doubting the depreciation of farmers products. It is being said during those times that, as the duty free import comes the market value for Rubber, Coconut, Aracanut, Tea, Coffee and Spices will reduce. The present market situations show that all these fears were wrong. A price comparison of 2009 and 2010 will clearly prove this. There is also no effect in the price of fishes too.
Agreement regarding the Services and Investments are yet there to be signed by India with ASEAN countries.
Prime Minister Dr. Manmohan Sigh and Minister of Commerce Anand Sharma told that the rights and interests of the farmers will be kept preserved in all these agreements.
