After long negotiations for about six years, India and the 10-nation Association of South East Asian Nations (ASEAN) have finally agreed to each others terms and conditions, and signed the much awaited Free Trade Agreement (FTA) on Thursday.

Anand Sharma, Indian Commerce and Industry Minister, and ASEAN Economic Ministers have signed the pact.

The pact covers the trade in goods under the Comprehensive Economic Cooperation Agreement (CECA), which would remove tariffs on 4000 items by 2016, covering 80 per cent of total trade in goods between the two sides.

The GoM pact formed by Prime Minister to allay domestic concerns exclude 489 items owing to the concerns of vulnerable domestic industries and agricultural producers.

It has been decided to implement the first phase till January 1, 2010. The tariffs on selected products will be reduced to zero between 2013 and 2016.

Mr. Sharma said that the agreement was well balanced and was in harmony with the India's Look East Policy.

In the previous financial year, bilateral trade between India and ASEAN stood at around USD 40 billion .