We want to conclude ASEAN-India trade in goods deal by this year: Malaysian PM
New Delhi (PTI): The comprehensive strategic partnership between India and the ASEAN grouping is emerging as a powerful foundation for global stability and growth amid uncertainties, Prime Minister Narendra Modi said on Sunday.
In a virtual address at the India-ASEAN (Association of Southeast Asian Nations) annual summit, Modi reaffirmed New Delhi's strong support to the grouping's centrality in the Indo-Pacific.
ASEAN is considered one of the most influential groupings in the region, and India and several other countries, including the US, China, Japan and Australia, are its dialogue partners.
Malaysia is hosting the annual ASEAN summit and related meetings in Kuala Lumpur in its capacity as the current chair of the grouping.
In his remarks, Malaysian Prime Minister Anwar Ibrahim said there has been "some real progress" in the ASEAN-India Trade in Goods Agreement (AITIGA) and that the grouping wants to conclude it by this year.
Modi declared 2026 as the "ASEAN-India year of maritime cooperation". The prime minister also welcomed Timor-Leste as the newest member of ASEAN.
"India and ASEAN together represent nearly one-fourth of the world's population. We not only share geography; we are also bound by deep historical ties and shared values," Modi said.
"We are companions in the Global South. We are not only commercial partners but also cultural partners. ASEAN is a cornerstone of India's Act East Policy."
The prime minister said India has always fully supported ASEAN centrality and ASEAN's outlook in the Indo-Pacific.
"Even in this era of uncertainties, the India-ASEAN Comprehensive Strategic Partnership has continued to make steady progress. And this strong partnership of ours is emerging as a robust foundation for global stability and development," he said.
The prime minister said both sides are steadily advancing cooperation in areas of education, tourism, science and technology, health, green energy and cybersecurity.
"We will continue to work together to preserve our shared cultural heritage and strengthen people-to-people ties," he said.
"The 21st century is our century, the century of India and ASEAN. I am confident that the ASEAN Community Vision 2045 and the goal of Viksit Bharat 2047 will build a bright future for all of humanity," he said.
India is committed to working shoulder-to-shoulder in this direction, he said.
Modi said the ASEAN Summit's theme of "Inclusivity and Sustainability" is clearly reflected in the joint efforts, whether it is digital inclusion or ensuring food security and resilient supply chains amid current global challenges.
"India fully supports these priorities and is committed to advancing them together," he said.
"India has stood firmly with its ASEAN friends in every disaster. Our cooperation in HADR (Humanitarian Assistance and Disaster Relief), maritime security and the blue economy is growing rapidly," he said.
"In view of this, we are declaring 2026 as "ASEAN-India Year of Maritime Cooperation," he noted.
The ASEAN-India dialogue relations started with the establishment of a sectoral partnership in 1992. This graduated to full dialogue partnership in December 1995 and summit level partnership in 2002.
The ties were elevated to a strategic partnership in 2012.
The two-way relations between India and ASEAN have been on a significant upswing in the last few years, with focus being on boosting cooperation in the areas of trade and investment as well as security and defence.
In his comments, the Malaysian prime minister said that the India-ASEAN relationship remained a "force for stability and mutual prosperity".
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
