India, Asean to strengthen air ties

PM's statement being seen as a move to retain upper hand in FTA talks.

India and the 10-nation Association of South East Asian Nations (Asean) today agreed to commence a discussion on an "open skies" aviation policy.

Prime Minister Manmohan Singh announced this at the fifth India-Asean summit here today. No timeline or basic framework for the proposed policy, that envisages opening up mutual airspace for unrestricted civilian air traffic, has been set at the moment.

Former prime minister Atal Bihari Vajpayee had proposed an "open skies" policy with Asean at the second India-Asean summit in 2003.

The prime minister's announcement is being seen as a move aimed at retaining an upper hand in the talks for the proposed free trade agreement (FTA). Indian government officials indicated that talks on the "open skies" policy will dovetail with the FTA negotiations, which are likely to be concluded by July.

The prime minister said greater connectivity was central to the idea of regional economic integration. "The initiative taken in 2003 to liberalise air services has led to significant increase in flight connections between India and Asean, with concomitant benefits in trade and people to people contact. I recall, at our last summit, the prime minister of Singapore had proposed that we look at an open skies policy. We have examined this proposal and I am happy to announce that we would be willing to engage Asean authorities in a discussion on such a policy," he said.

Briefing reporters on the conclusion of the summit, Commerce Minister Kamal Nath said, "We are looking at a collective FTA with Asean nations. However, we will continue talks with (member) countries for (bilateral) trade pacts".

Implicit in this statement is India's strategic stance on deepening economic integration with the East either through an FTA or comprehensive economic partnership agreements.

In effect, while India works on an FTA with Asean, it will continue pursuing individual treaties with China, Malaysia and Indonesia. India has already arrived at such pacts with Thailand and Singapore.

"The report of the Indo-China joint study group (on the trade pact) will come by October this year," Nath said, adding that a similar study with Malaysia had been concluded and the report was expected shortly.

"Thereafter, we intend to begin negotiations on this. A study group is also being set up with Indonesia to examine a similar pact," he said.

India is confident that the agreement that trade ministers from the two sides signed a few days ago here, will lead to a successful outcome.

In his address at the summit, Prime Minister Manmohan Singh stressed the need to expedite negotiations in order to finalise the FTA by July.

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