India has finally declared to stay out of RCEP negotiation which could have put domestic agricultural and industries at risk due to surge in imports. The decision will further strengthen governments ‘Make in India’ plan.
While the trade pact would have opened up India’s market but there were no assurances on getting access to markets like China, was one of the driving factor for this decision.
“The present form of the RCEP Agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP,” Prime Minister Narendra Modi said in his address at the RCEP summit in Bangkok, according to a tweet by official broadcaster Prasar Bharati. “It also does not address satisfactorily India’s outstanding issues and concerns. In such a situation, it is not possible for India to join RCEP Agreement.”
The RCEP is a trade deal among China and the Association of Southeast Asian Nations (ASEAN), which covers about a third of the world economy and half its population. India already has a huge trade deficit with RCEP countries and joining RCEP would have resulted in incurring even greater trade deficit with China which has great competence in the manufacturing sector.
India was looking for some specific safeguards for its agricultural and industrial products from a surge in imports, especially from China. The decision comes amid rising opposition from industrial players and leading political parties.
“India conveyed its decision at the summit not to join the RCEP agreement. This reflects both our assessment on the current global situation as well as fairness and balance of the agreement. India had significant issues of core interests that remained unresolved,” Secretary (East) in the Ministry of External Affairs, Vijay Thakur Singh, told reporters in Bangkok on Monday.
It’s a sigh of relief for the steelmakers who were apprehensive about RCEP deal and had fears about the flooding of cheap Chinese steel products.
