The Association of South-East Asian Nations (ASEAN) has concluded a deal for free trade with India after years of negotiations. The final agreement for the FTA will be signed in December this year during the ASEAN-India summit in Bangkok attended by all 10 members of ASEAN. Th e agreement is expected to be eff ective on January 1, 2009.

The agreement covers a range of products including capital goods, textiles, electronic goods and chemicals. The ASEAN member nations and India have also agreed to lift import duties on 71 per cent of products by December 31, 2012 and additional products by 2015. The deals on services and investment are not included at this time.

The value of bilateral trade between ASEAN countries and India was about US$38 billion in 2007 and is expected toreach US$50 billion by 2010.