category IV- FTA -asean

CATEGORY iv

The negotiations to conclude a services deal under the free trade agreement (FTA) (NO SERVICE DEAL )between India and the Association of South East Asian Nations (Asean), the 10-country trading bloc, is facing hurdles as ‘serious concerns’ emerge over the issue

Ø     of movement of natural persons, or Mode IV, as referred in trade jargon.

Ø     “very serious concerns were raised by some countries like Indonesia and the Philippines over India’s demand over greater liberalisation under Mode IV,” a senior commerce department official told Business Standard, as they have several problems facing them such as unemployment and unskilled labourers,” the official said.

Ø     Under the services sector, India had been demanding greater opening in the Mode IV category so that more and more professionals like doctors, nurses, chefs and accountants got greater job opportunities in Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Ø     . Some of the other south-eastern economies had also been slow in recovering from the financial crisis.

India had signed the goods deal with Asean in August 2009 that came into effect from January this year after over six years of negotiations. This would result in doing away with at least 80 per cent of tariffs in a phased manner between 2013 and 2016. The tariffs on sensitive products would also be slashed by 5 per cent by 2016

Association of Southeast Asian Nations

The Association of Southeast Asian Nations^[4] (ASEAN

-	Secretary-General	Surin Pitsuwan
-	ASEAN Summit Presidency	Indonesia

 is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand.^[8]

Ø     Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.^[9]

Ø     ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart.

Ø      In 2010, its combined nominal GDP had grown to US$1.8 trillion.^[10] If ASEAN were a single entity, it would rank as the ninth largest economy in the world.

Ø     ASEAN was preceded by an organisation called the Association of Southeast Asia, commonly called ASA

The ASEAN way can be traced back to the signing of the Treaty of Amity and Cooperation in Southeast Asia. "Fundamental principles adopted from this included:

Ø     mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;

Ø     the right of every State to lead its national existence free from external interference, subversion or coercion;

Ø     non-interference in the internal affairs of one another;

Ø     settlement of differences or disputes by peaceful manner;

Ø     renunciation of the threat or use of force; and

Ø     effective cooperation among themselves".^[40]

1st	23–24 February 1976	Indonesia	Bali	Soeharto
2nd	4–5 August 1977	Malaysia	Kuala Lumpur	Hussein Onn
18th4	7–8 May 2011	Indonesia	Jakarta	Susilo Bambang Yudhoyono
19th4	14–19 November 2011	Indonesia	Bali