Indian PM Arrives In Cambodian Capital for India-ASEAN Summit

PHNOM PENH (NNN-UNI) -- Prime Minister Manmohan Singh arrived in the Cambodian capital this afternoon for deepening India's 'Look East' policy by widening free trade agreement with the ten-nation bloc of Association of South East Asian Nations during the 10th India-Asean summit.

During his three-day visit, he will also participate in the 7th East Asia summit (EAS) which is being attended by US president Barack Obama and Chinese Premier Wen Jibao too.

Whether his bilateral meetings with both the leaders on the sidelines of the EAS summit have been firmed up would be known later.

Among other issues, maritime security in the east Asian region,which sees an annual traffic of 50,000 ships, is likely to be high on the EAS's agenda.

Dr Singh has been keen to widen the scope of FTA with Asean, by including agreements on services and investment, besides trade which in 2011-12 was worth 79 billion dollars.

After the 2009 FTA became operational in August 2011, India and Asean have been negotiating for expanding its ambit to services and investments.

It is significant that Commerce and Industry Minister Anand Sharma is with the Prime Minister to lend support to his trade agenda.

National Security Advisor Shivshankar Menon and Prime Minister's Principal Secretary Pulok Chatterji will be assisting the PM during parleys with Asean leaders and EAS' participants.

The Prime Minister headed Trade and Economic Relations Committee (TERC), in a meeting held in New Delhi on November 2, had directed officials to conclude agreements for further opening of commerce with the Asean which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The trade-related panel held the view that India should aim to conclude this agreement before the India-Asean summit being held in the Cambodian capital on Monday.

Now that Mr Sharma is with Dr Singh, India will pitch for widening the existing FTA with the Asean beyond goods to investment and services.

Services are of importance to India as they contribute over 55 per cent of the country's Gross Domestic Product (GDP).

After implementing FTA in goods in August 2011, India and the 10-nation bloc have been engaged in negotiations to widen the pact.

India wants service sector to be liberalised by removal of all the non-tariff barriers.

India is also trying to broadbase bilateral trade pact with Thailand which is currently limited to 82 items.

The Prime Minister, in the event of his bilateral meeting with his Thai counterpart Yingluck Shinawatra,is also likely to push for it, sources said.--NNN-UNI