In the recently held Regional Comprehensive Economic Partnership
(RCEP) Summit in Thailand, India decided not to finalize the RCEP trade deal.
India has expressed its concerns over lowering and elimination
of tariffs on products from other countries, as it would negatively affect the
domestic agricultural and industrial sector.
Why India didn’t sign?
Ø Domestic industry
and dairy farmers had strong reservations about the trade pact.
Ø India’s trade
deficit with the RCEP nations is $105 billion, of which China alone accounts
for $54 billion.
Ø The worry is also
over Chinese manufactured goods and dairy products from New Zealand flooding
Indian markets, hurting domestic interests.
Ø The trade agreement
was also seen as being detrimental to the government’s Make in India
initiative.
Ø India was looking
for specific rules of origin to ensure the trade pact wasn’t abused by
non-partner countries and an auto-trigger mechanism to protect it from a surge
in imports.
Ø Ecommerce and trade
remedies were among other key areas of concern that failed to find satisfactory
redressal.
Ø India was also
worried about keeping 2014 as the base year for tariff reductions.
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