Monday, 4 November 2019

India opts out of RCEP; PM Modi says key issues remain unresolved

Fifteen other nations, however, went ahead with the deal after the conclusion of the summit in Bangkok, which was also attended by Prime Minister Narendra Modi
Jacinda Ardern, ModiThe government on Monday said India will not join the Regional Comprehensive Economic Partnership (RCEP) deal, adding that doing so would adversely affect the national interest.
This was a nod by the government to concerns raised by domestic industry and farmers, most of whom had opposed the pact, fearing it would lead to uncontrolled dumping by China. “India conveyed its decision to not join… (There are) significant issues of core interest and the impact it would have on the livelihood of vulnerable sections. India has participated in good faith in the RCEP discussions and had negotiated hard with a clear-eyed view of our interests,” said Vijay Singh Thakur, secretary (east), Ministry of External Affairs, in Bangkok.
She added that not joining the pact was the right decision at the moment. Fifteen other nations, however, went ahead with the deal after the conclusion of the summit in Bangkok, which was also attended by Prime Minister Narendra Modi.
“Participating countries have concluded text-based negotiations for all 20 chapters and essentially all their market access issues,” said the joint statement issued after a meeting of RCEP leaders. The deal is now being scrubbed for legal issues. Negotiations, started in 2012, will now culminate in a final deal being signed by 2020, it added.
The RCEP nations have also left the door open for India — the largest untapped consumer and industrial market — in the bloc. “All RCEP countries will work together to resolve these outstanding issues in a mutually satisfactory way. India’s final decision will depend on satisfactory resolution of these issues,” the joint statement added. But Modi informed the other leaders that the deal in its current form “does not fully reflect the basic spirit and the agreed guiding principles of the RCEP”.

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