ASEAN: Evolution, Members & India-ASEAN FTA

• Context (TH): PM Modi arrived in Indonesia to attend the 20^th Association of Southeast Asian Nations-India summit and the 18^th East Asia summits.
• The ASEAN-India Summit is a diplomatic meeting between the member states of the Association of Southeast Asian Nations and India.
• It is typically held as part of the ASEAN Summit meetings.

About the Association of Southeast Asian Nations (ASEAN)

• It is a regional group of ten countries that promotes economic, political, and security cooperation.
• India is not a member of ASEAN.

Evolution

• It was established in 1967 in Bangkok (Thailand) with the signing of the ASEAN Declaration (Bangkok Declaration).
• It has its secretariat in Jakarta, Indonesia.
• Indonesia, Malaysia, Philippines, Singapore, and Thailand are the founding members of ASEAN.
• It has ten member countries. Other members are Myanmar, Laos, Cambodia, Vietnam, and Brunei.

Leadership

• ASEAN’s leadership rotates annually based on the alphabetical order of the English names of the member states.
• A member state at the helm chairs the ASEAN summit.
• Myanmar was scheduled to take over the leadership in 2026.
• Recently, the ASEAN leaders have decided not to give the leadership of this bloc to Myanmar.
• The Philippines agreed to take over the regional bloc’s chairmanship in 2026.

ASEAN Summit

• It is the highest policy-making body in ASEAN, comprising the Heads of State.
• As per regular practice, the ASEAN Summit is held twice annually.
• The first ASEAN Summit was held in Bali, Indonesia on 23-24 February 1976.

India-ASEAN FTA

• ASEAN accounted for 11.3% of India’s global trade in 2022-23.
• The ASEAN India Trade in Goods Agreement (AITGA) is expected to be completed by 2025.

Need to Renegotiate FTA

• After the FTA, India’s trade deficit with ASEAN rose from $7.5 billion annually to $43.57 billion in FY23.
• Incidences of re-routing of goods by China through the ASEAN countries cause duty losses.

New Expected Provisions

• New elements of product-specific rules will make FTA more efficient.
• Rules of Origin will be incorporated to increase market access and to stop Chinese circumvention.
• Trade remedies will protect domestic industry against unfair trade practices or unforeseen surges in imports of goods.
• No new areas, such as environment, labour, MSMEs or gender, will be added to avoid new issues.

ASEAN-India Summit 2023

• At the annual 2023 Summit, PM Modi presented a 12-point proposal to expand cooperation between India and the grouping.
• It proposed a ‘multi-modal connectivity and economic corridor’ linking Southeast Asia (SEA), India, West Asia, and Europe.
• The proposal resembles China’s Belt and Road Initiative (BRI).

ASEAN’s stance against the junta in Myanmar

• The ASEAN has strongly condemned the violence and urged the armed forces to stop targeted attacks on civilians.

Five-Point Consensus

• In 2021, ASEAN and Myanmar’s junta reached a five-point consensus.
• It aimed at addressing the post-coup crisis in the country.
• Under this plan, the junta promised to stop the violence and start inclusive political dialogue.
• The junta has continued violating the consensus.

East Asia Summit (EAS)

• It is the Indo-Pacific’s forum for strategic dialogue.
• It is the only leader-led forum at which all key Indo-Pacific partners meet to discuss political, security, and economic challenges.
• The first EAS was held in Kuala Lumpur in 2005.
• The EAS has 18 members:
  • Ten ASEAN countries
  • Eight other countries: China, India, Russia, United States, Australia, Japan, New Zealand, Republic of Korea (South Korea).

Act East policy

• It was announced by PM Modi in 2014.
• It is a successor to the Look East policy.
• It focuses on the extended neighbourhood in the Asia-Pacific region.
• The objective is to promote economic cooperation and cultural ties and develop strategic relationships with countries in the Asia-Pacific region.
• It has emphasised India-ASEAN cooperation.