India and the bloc of 10 South East Asian countries Asean are close to signing a Comprehensive Economic Partnership Agreement (CEPA), the Commerce and Industry Minister, Mr Anand Sharma, said on Wednesday.

The CEPA will expand the ambit of the existing free trade agreement in goods to include services and investments, the key area of interest for India.

“We are in an advanced stage of concluding negotiations (for free trade agreement) in services and investments,” Mr Sharma told reporters here in the presence of trade ministers of Asean. He added that the signing of the agreement is expected by end-2011.

Trade Ministers of Asean are in the country to attend the India-Asean Business Fair and Conclave. FICCI is the lead co-ordinator of the event.

The Malaysian International Trade and Industry Minister, Dato Seri Mustapa Mohamed, said further progress is expected when negotiators would meet later this month in Brunei Darussalam.

“On the movement of natural persons, there are some concerns within the Asean countries that whether this might have an impact on our own people and professionals in the Asean region,” he added.

Concerns were also expressed by the Philippines Department of Trade and Industry's Secretary-General, Mr Gregoryl Domingo. He said that the country has some constitutional constraints regarding the services agreement, but expects negotiators to find a way out.

Both India and Asean expect trade volumes to touch $70 billion by 2012. The current volume stands at $50.33 billion.

“We have set a target of $70 billion by 2012. We are committed to achieving the target,” Mr Sharma said. India's merchandise exports are likely to touch $225 billion this fiscal year ending March 31, exceeding its initial aim of $200 billion.

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