India is ‘fully committed’ to taking forward the negotiations for a mega Free Trade Agreement (FTA) called the Regional Comprehensive Economic Partnership (RCEP), to ensure that it is a ‘balanced’ pact that benefits all the 16 Asia Pacific nations, including itself, that are participating in the talks, according to Commerce Secretary Rita Teaotia.
The senior official in effect dismissed speculations that the India-China border standoff will have an adverse impact on the trade talks.
While the RCEP negotiations -- aiming at liberalising norms in the 16 countries including India and China to boost trade and investment in the Asia Pacific region -- are underway behind closed doors at the Hyderabad International Convention Centre, several people’s groups from across the country held demonstrations demanding a halt to the talks.
They claimed that the mega regional FTA will, among other things, adversely impact not only farmers’ rights but also access to affordable medicines, besides threatening the protections to India’s digital industry. However, the Commerce Secretary told The Hindu “all the 16 countries, including India, have expressed willingness to constructively engage in the talks and have put forward revised offers in goods and services to negotiate a mutually beneficial outcome.”
Amid fears that the FTA will result in a surge in inflow of cheap goods into India from these countries including China, in turn impacting the Indian industry and farmers, the senior official said that the Indian negotiating team is confident that they can “protect India’s interests and ensure that the FTA is not unfair to India.”
“We are going to have more frequent rounds of negotiations. There will also be a Ministerial meeting in September,” she said, indicating that there was enough political will to expedite the conclusion of the talks.
This is the 19th round of the RCEP Trade Negotiating Committee meeting at the technical level. In addition to this, so far there have been four ministerial meetings and three ‘Inter-sessional Ministerial Meetings’. India Inc. is learnt to have reservations against India undertaking any binding commitment to immediately eliminate duties on most traded goods, as part of the FTA. However, Ms. Teaotia said “one should not underestimate India’s strengths in various sectors.” She added that the FTA negotiations always are on the basis of “give and take” and that there will be “gains for India” from the pact.
India is pushing for liberalisation of services, including easing norms for movement of professionals across borders for short-term work. However, the slow progress of the services negotiations has been worrying India.
The sources said that though there are demands from some RCEP countries to open up the public procurement segment, India is not willing to undertake any binding commitment on that. According to the Government, procurement of common use goods and services required by the Central and State Government agencies and departments as well as state-owned companies in India is estimated to be worth over ₹ 5 lakh crore annually. The Government is keen on retaining its policy space to ensure development of local industry and the social sector using the public procurement process.
