New Delhi, March 13: Commerce secretary S.N. Menon has said the government, in consultation with stakeholders across the country, is finalising a negative list for the Indo-Asean Free Trade Agreement (FTA) in order to protect its sensitive products and sectors, especially agriculture.

Items on the negative list ? also known as the sensitive list ? will be exempt from tariff reductions, he said.

“It is admitted that our domestic industry faces some handicaps compared to the Asean countries. Considering these, the offer list for the Asean has been divided into four categories ? normal track 1, where the tariffs would be eliminated by 2011; normal track 2, where tariffs would be brought down to 5 per cent by 2011 and eliminated by 2013; sensitive track 1, where tariffs would be brought down to 5 per cent by 2013 and eliminated by 2018; and sensitive track 2, where there would be no reduction or elimination of tariffs,” Menon said.

He was addressing the Indo-Asean FTA Negotiations: Wrap up Meeting organised by the Unctad here today.

He said the sensitivity of the domestic industry would be considered while finalising the list and added that longer time-frames would be given to comfort the industry.

Discussions will be held on plantation crops, spices, vegetable oils, rice, fish, textiles, chemicals and plastics, electronics, machinery, auto components and footwear sectors for drawing up various categories.

The Framework Agreement on Comprehensive Economic Co-operation between India and the Asean, signed on October 8, 2003, inter-alia, envisages a free trade area in goods, and conclusion of these negotiations by June 2006. Menon indicated that negotiations to cover services were also likely to be initiated soon.

The Indo-Asean FTA takes forward India’s “Look East” policy, which was initiated in the early 1990s, Menon said. Today, Asean is one of the fastest growing markets for the country’s exports, he added.