The ASEAN-India Framework Agreement on Comprehensive Economic Cooperation (AIFACE) was signed in 2003 with the aim of creating a free trade area between ASEAN and India. The agreement came into effect in 2010 and aims to increase trade and investment between the two regions.
Under the agreement, ASEAN and India have agreed to work towards reducing and eliminating customs duties on goods traded between them. The agreement also covers other areas such as services, investment, and intellectual property rights.
One of the key benefits of the AIFACE is that it opens up new markets for businesses in both regions. India is a rapidly growing market with a large middle class and increasing purchasing power. ASEAN is one of the fastest-growing regions in the world and has a combined population of over 600 million people.
The agreement also helps to boost economic cooperation between ASEAN and India. This includes areas such as investment and technology transfer, which will help to create new jobs and enhance economic growth in both regions.
Another advantage of the AIFACE is that it helps to promote regional integration and strengthen ties between ASEAN and India. The agreement encourages cooperation and collaboration between the two regions, which can help to build mutual trust and understanding.
However, there are also challenges associated with the AIFACE. One of the biggest challenges is ensuring that the agreement is implemented effectively and that all parties are committed to its success. This requires strong political will and effective mechanisms for monitoring and enforcing the agreement.
Another challenge is the potential for trade disputes and disagreements over issues such as intellectual property rights and investment regulations. These issues will need to be addressed through effective communication and negotiation between ASEAN and India.
Overall, the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation is an important step towards deepening economic ties between ASEAN and India. While there are challenges associated with the agreement, it has the potential to bring significant benefits to businesses and economies in both regions.