Madurai

Chamber supports PM’s decision

MADURAI

The Tamil Nadu Chamber of Commerce and Industry supported Prime Minister Narendra Modi’s decision not to sign the ‘Regional Comprehensive Economic Partnership (RCEP)’ pact in its current form at the RCEP summit held in Thailand.

Under the RCEP agreement, 10 Asean countries of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and six others in the RCEP pact – India, China, Japan, South Korea, Australia and New Zealand had originally agreed to reduce tariff of import and export and allow free trade among them.

“Allowing duty-free imports, especially from China which has huge manufacturing capacity and inventory, could push our manufacturers, particularly those in the Micro Small and Medium Enterprises (MSME) sector beyond recovery. It can also cripple our export volume and agricultural production,” said a press release from the organisation.

There is no provision for mandatory issue of certification of origin from the manufacturing country to avoid clandestine entry of goods routed through another country.

“India possess a very huge market in the region and it is obvious that China, severely battered by the escalating trade war with the United States of America, is very keen on flooding India with its goods by all means,” the statement read.

The Chamber added that it is important for the Prime Minister to make India’s manufacturing sector more competitive and vibrant by reducing the cost of credit and logistic outlay and correcting the issues faced by the sector due to complicated duty and tax procedures.

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Printable version | Jul 5, 2020 6:22:22 AM | https://www.thehindu.com/news/cities/Madurai/chamber-supports-pms-decision/article29932249.ece

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