AIBC Report to 19TH AEM Consultation 2022

In preparation for the AIBC annual consultations with the ASEAN Economic Ministers’ (AEM) and Minister of Commerce India a preparatory consultative meeting was held between AIBC Council members from ASEAN and India led by both the co-chairs, Mr. Sanjiv Mehta and Dato Ramesh Kodammal. During the consultations views were exchanged and many reiterated the need for ASEAN and India to continue to further strengthen economic relations vis-à-vis other economic initiatives that are being promoted within and outside the region, which among others include the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the recently announced Indo-Pacific Economic Framework (IPEF). Some of the issues raised were like the recommendations submitted by the Council at past meetings. These include the need to eliminate of non-tariff barriers in a systematic manner, facilitating the mobility of business people and supporting and increasing the participation of MSMEs in the ASEAN-India economic process. The post COVID-19 pandemic period provides ASEAN and India to accelerate engagement to tap on the opportunities and identify new steps that could be taken to increase ASEANIndia participation in the regional and global supply chains activities, learning from the lessons of the last two years. There are indeed ample opportunities. For the first time, it is noted that ASEAN-India trade has peaked at USD91.5 billion with ASEAN’s exports registering USD53.7 billion and ASEAN’s imports from India registered at USD37.7 billion as illustrated in the table below.