India has offered further pruning of its negative list of 560 items for Association of South East Asian Nations on which there will be no duty cuts. This is aimed at early conclusion of the negotiations for a free trade agreement with the regional block.
The offer has come even as Asean has sought deeper duty cuts on crude palmoil, pepper, black tea and asked that duty on 85 per cent of the total traded items should be brought to zero by 2015.
After the trade negotiating committee meeting held in Jakarta last week, the commerce ministry will have to approach the Prime Minister's trade and economic relations committee to obtain a fresh negotiating mandate.
Officials are still optimistic about a deal being clinched by next month when Prime Minister Manmohan Singh will participate in the Asean summit.
"Both sides are willing to consider further flexibilities," an official said.
Asean also submitted a fresh sensitive list to New Delhi at the meeting. Barring Singapore, all other Asean members have submitted separate sensitive lists, which they want to exclude from duty cuts.
The Asean list of 387 items from India's negative list of 560 items pertains to agriculture, textiles, autoparts, chemicals and petrochemicals, which it wants New Delhi to bring under duty cuts. Although, India has conveyed its reluctance in accepting the list, but it is willing to consider pruning the negative list as much as possible.
In addition to this, Asean also wants India to revise the timelines for reducing duties on Crude palmoil (80 per cent), refined palmoil (90 per cent), black tea (100 per cent) and pepper (70 per cent). India had offered to reduce duties on crude palmoil, black tea and pepper to 50 per cent and on refined palmoil to 60 per cent in a phased manner by 2022.
Asean wants deeper cuts on these items and wants the cuts to begin in the first year and be completely implemented by 2018.
Officials concede that while time lines could be revised, it is unlikely that New Delhi will offer deeper cuts on these four special products.
Also, India has so far offered to bring down duties on 4021 items to zero by 2011 under the 'normal track'. These items cover 77 per cent of the total traded items.
Asean wants the zero duty list to be expanded to include an additional 349 items and wants the reduction to be in place latest by 2015.