India is expected to make it clear that while it is willing to consider new initiatives to accelerate the process for the conclusion of a free trade agreement (FTA) with the Association of South East Asian Countries (Asean), it cannot prune its negative list of trade items further.This is likely to be the focus of discussions at the fifth India-Asean summit, which is being attended by Prime Minister Manmohan Singh.A major obstacle to the conclusion of the agreement was removed at the consultation meeting of the Asean trade ministers on January 11 when the grouping accepted India's proposal to reduce its negative list to 490 items, with trade coverage not exceeding 5 per cent by both sides.However, ticklish issues like Malaysia's demand to include crude and refined palm oil in the FTA list persist. While India is willing to discuss all aspects, it is unlikely to cede to any demand for cutting the list further.Singh, accompanied by wife Gursharan Kaur and a large delegation including National Security Adviser MK Narayanan, arrived here this evening to attend the fifth India-Asean summit and the second East-Asia Summit, scheduled for January 14 and 15, respectively. Commerce Minister Kamal Nath is already here along with senior officials from his ministry.Singh has a packed agenda during his stay here. On January 14, he will hold meetings with Chinese premier Wen Jiabao, President Gloria Macapagal-Arroyo of the Philippines and Malaysian Prime minister Abdullah Badawi. He is slated to meet Prime Minister Nguyen Tan Dung of Vietnam the day after.The importance of the talks can be gauged from the prime minister's statement: "I believe that the India-Asean FTA is an important initiative to promote this greater economic synergy and I shall use this opportunity to explore steps that both sides can take to hasten the conclusion of this important agreement."The FTA in goods is presently under negotiation. Implementation of the agreement was to have begun on January 1, 2006. With the latest development, an agreement is not expected before July this year, by when all other outstanding issues are expected to be sorted out. Nath has already said that he expects reciprocal market access for India's exports to the Asean countries.At the end of the 2nd East-Asia summit, the heads of governments are scheduled to announce a declaration on energy security. India and China are likely to gain significantly from this agreement.
