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Since the initiation of economic reforms in 1991, ‘Look East Policy’ has been a major component of India’s trade diplomacy. During the first decade after inception of WTO, India relied heavily on the multilateral trade reforms for securing export growth, but slow progress of the Doha Round negotiations caused it to shift focus on the regional trade agreements (RTAs) instead from 2004 onwards. The Association of Southeast Asian Nations (ASEAN) in Southeast Asia emerged as India’s natural trade partner with its lucrative market but the negotiations proved to be a complex exercise. The Indo-ASEAN Free Trade Agreement (FTA) covering merchandise products has boosted bilateral trade flows, but the balance of trade has improved in ASEAN’s favour. The current article attempts to analyse the potential trade effects for India from its deepened trade relationship with ASEAN through the proposed Indo-ASEAN comprehensive economic cooperation agreement (CECA) covering trade in services and investment provisions.
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