China - ASEAN Free Trade Agreement (FTA).

The Free Trade Agreement(FTA) between China and ASEAN comes into force on Friday.
In this agreement China cut tariffs on import from ASEAN from an average of 9.8% to about 0.1%. Original members of ASEAN - Brunei, Indonesia, Malaysia, Phillipines, Singapore and Thailand have also agreed to cut import duty from an average of 12.8% to just 0.6%. This agreement expands a limited 2005 agreement between these nations.

Impact on India

India had also signed Free Trade Agreement in Goods with ASEAN as part of the Comprehensive Economic Cooperation Agreement(CECA), in August 2009 in Bangkok. Moreover, currently negotiations on Agreements on Trade in Services and Investment with ASEAN are going on.
So, there is little concern regarding trade with ASEAN countries but story is different when picture of trade with China comes. At present 58% of Indian export to China consists of Iron Ore with very little component of value added goods. India has been trying to widen the trade basket to inclue manufactured goods, fruits and vegetables. This effort might be severely hit because goods from ASEAN nations will now cost much less to Chinese Consumers.