Malaysia, which would assume Chairmanship of ASEAN in 2015, wants India to reduce non-tariff barriers along with scheduled gradual dismantling of tariff barriers to zero.

Aida Safinaz Allias, minister counselor (economic affairs) of High Commission of Malaysia told Business Line that non-tariff barriers were hindrances to free flow of goods, services and capital between the ASEAN and India. “Red tape, old rules and redundant regulations serve as non-tariff barriers”, she said. The official was here as a part of a Malaysia team’s visit led by High Commissioner Dato’ Naimul Ashakli Bin Mohammad.

The free trade agreement between the 10-nation economic grouping and India is on since 2010. This FTA is now being reviewed for further trade and investment flows. ASEAN is attempting to classify and notify non tariff measures, in coordination with the World Bank.

India and Malaysia last year signed a MoU on customs cooperation. A Comprehensive Economic Cooperation agreement between the two countries had come into force in July 11.

In 2013, India imported crude oil worth $ 1.87 million and palm oil worth $ 1.71 billion from Malaysia in 2013. Indian investment in Malaysia stands at around $2 billion.

According to Sanjay Budhia, Chairman, National Committee on Exports of CII, though the Malaysian investment through FDI route between April 2000 and February this year was $ 636.07 million, there are about $6 billion Malaysian investments, which understood to have come through the Mauritius route. Incidentally, India had signed a revised double taxation avoidance treaty with Malaysia in May 2012.

The High Commissioner said his team discussed business and investment opportunities with West Bengal Chief Minister on Friday. However, he declined to give details.

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