Asean has urged India to eventually slash its exclusion list to 60 items, accounting for only 3 per cent of total two-way trade compared to the current 18 per cent, the Trade Negotiations Department said yesterday.

But in a bid to move the talks forward, Asean has called on India to withdraw 387 items from the total of 560 items it has asked to be excluded from the tariff-cut scheme.

"India should review its exclusion list to accelerate the opening of trade between Asean and India," deputy director-general Winichai Chaemchang said yesterday.

Winichai said Asean would have to seek political support if India insists on keeping its exclusion list at 560 items.

Asean and India concluded the 14th round of FTA negotiations in Burma last week. The talks started a year ago, but have made little headway due to non-closure on the exclusion list and rules of origin.

The next round is scheduled for January 8-11, but the issue might be raised next month at Asean's Senior Economic Officials Meeting in Cebu, the Philippines, to clear the roadblocks.

India has whittled down its exclusion list from 1,700 to 560 items, but Asean members are not satisfied because many of the items in the protected list are major goods exported from Southeast Asian countries, such as processed chicken, sugar, processed food, plastics, automobiles and garments.

Other negotiating partners of Asean such as South Korea have put only 40 items, accounting for 1 per cent of trade, on their exclusion list.

Under the normal track of trade liberalisation, India proposed to eliminate duties on more than 4,000 items by 2015, while Asean has agreed to end duties on more than 4,500 items by 2013.

Thailand has also called on India to accelerate the cut in rubber duties to 50 per cent from 60 per cent by 2022 after rubber products were included on India's highly sensitive product list.

Asean members also want India to lower tariffs on palm, palm oil, tea, pepper and coffee.

Petchanet Pratruangkrai

 The Nation