A long-delayed free trade agreement between India and Southeast Asian nations is expected to be concluded by May 2008 after the last few problems are ironed out, ap quoted Indian Commerce Minister Kamal Nath as saying Tuesday. He made the announcement after talks with economic ministers of the 10-member Association of Southeast Asian Nations. ASEAN leaders were in Singapore this week for their annual political summit. «While the main elements of (a free trade pact) have been agreed upon, a few issues relating to preferential access for a few products remain,» Nath said. He said both sides had agreed to conclude the pact in May 2008. The announcement represented a complete turnaround after pessimism expressed by some ASEAN countries on Monday that negotiations had stalled because of serious differences with India. But Nath said the differences were minor. «We are in our last mile,» he said. «Timeline, deadline are important, but bottom line is the most important.» India and ASEAN were supposed to sign a free trade pact in January, but negotiations stalled over India's refusal to budge on tariffs on five key items: petroleum, palm oil, pepper, tea and coffee. Last year, India offered to cut tariffs on crude palm oil from 80 percent to 50 percent and for refined palm oil from 90 percent to 60 percent by 2018. But Malaysia and Indonesia, which jointly supply 70 percent of India's edible oil, want a further reduction in tariffs to 30 percent for crude palm oil and 40 percent for the refined product. Vietnam and Thailand are also seeking more tariff concessions for black pepper, tea, coffee and petroleum products, officials said. At the same time, Brunei wants India to cut duties on petroleum, its main export item. Tariffs are already low at 5 percent, but Brunei wants further concession. Nath said negotiations were under way concerning all five products. «We are still looking for middle ground. There will be intensive negotiations,» Indonesia Trade Minister Mari Pangetsu said, adding that palm oil is one of the areas where «we need to find middle ground.» Trade between India and ASEAN reached nearly US$20 billion (euro14 billion) last year and is projected to surge to US$30 billion (euro 21 billion) by 2010 under the proposed pact.
