PM Modi decides not to join China-backed RCEP
Neither the Talisman of Gandhiji nor my own conscience permit me to join RCEP, Prime Minister Narendra Modi said on Monday as he decided not to join China-backed mega Regional Comprehensive Economic Partnership (RCEP) deal. The prime minister made the announcement during his speech at the RCEP Summit in Bangkok, which was attended by several world leaders. The RCEP comprises 10 ASEAN nations and six of its FTA (free trade agreement) partners - China, India, Japan, South Korea, India, Australia and New Zealand. However, India opted out of the RCEP.
Neither Gandhi's Talisman nor my conscience permits me: PM Modi
The present form of the RCEP Agreement does not fully reflect the basic spirt and the agreed guiding principles of the RCEP. 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. India stands for greater regional integration as well as for freer trade and adherence to a rule-based international order. India has been pro-actively, constructively and meaningfully engaged in the RCEP negotiations since inception. India has worked for the cherished objective of striking balance, in the spirit of give and take. Today, when we look around we see during seven years of RCEP negotiations, many things, including the global economic and trade scenarios have changed. We cannot overlook these changes. When I measure the RCEP Agreement with respect to the interests of all Indians, I do not get a positive answer. Therefore, neither the Talisman of Gandhiji nor my own conscience permit me to join RCEP.
Industry, traders & farmers welcome India's decision
Industry, traders and farmers appreciated Modi government's decision not to join RCEP. The country's leading milk supplier Amul described the move as "landmark".
"CII appreciates Government of India’s stance on addressing all outstanding issues before joining RCEP," said Vikram Kirloskar, President, Confederation of Indian Industry. He said the CII will continue to support and work with government in its endeavour to integrate with the global economy through mutually beneficial trade agreements. The long term interest of industry in India is to get well integrated in global value chains and beneficial trade agreements could play important roles in realizing this interest, said Kirloskar.
FICCI President Sandip Somany said the chamber fully supports the prime minister's decision against joining RCEP, as India's several concerns remain unaddressed and various issues are unresolved so far in the proposed deal under negotiation. In recent months serious apprehensions and reservations on RCEP have been expressed by a large number of sectors including steel, plastics, copper, aluminium, machine tools, paper, automobiles, chemicals, petro-chemicals and others, he said. Further, there were not enough positive developments in the area of trade in services including easier mobility for our professionals and service-providers, Somany said.
Traders' body CAIT said Chinese products, which are very low priced and of substandard quality, are creating a disequilibrium in Indian markets.
CAIT Secretary-General Praveen Khandelwal appealed to the prime minister that after "this landmark move", the government should now work dilligently towards creating a more conducive environment for retail trade in India and also erase all anomalies and disbalances created by the Law violating e-commerce companies.
Congress claims victory
Congress on Monday claimed victory saying its forceful opposition ensured that the BJP government backs out from bartering the interests of farmers, dairy producers, fishermen and small and medium businessmen. Congress chief spokesperson Randeep Surjewala said it is a win for all those protecting national interests. "As BJP and Sh. Amit Shah indulge in fake credit seeking today, let them remember that Congress' forceful opposition made them back down," he claimed. He alleged that the BJP government "had gone overboard" in its zeal to sign RCEP.
"A forceful opposition by Congress and Rahul Gandhi ensures that BJP government backs down from bartering the interests of farmers, dairy producers, fishermen, small and medium businesses at the altar of political expediency (sic)," he said on Twitter.
He said with "rampant unemployment, a sinking economy and deep agrarian crisis emanating from utter mismanagement of economy by BJP Government", signing RCEP would have been catastrophic. "By backing down at the behest of the Congress party and farmers groups, our government has been forced to take a correct decision," Surjewala said.
"The Modi Government was pushing to sign RCEP agreement without addressing genuine concerns and national interests," he said, adding that no care was taken about farmers and MSMEs objections or national security interests. "India's farmers and MSME's had genuine unaddressed concerns about -- Circumvention of Rules of Origin to dump Chinese goods; Absence of safeguards to prevent against import surges at the cost of domestic industry; No assurance on market access for service and IT industry," he also said.
ALSO READ | India decides against joining RCEP trade deal
ALSO READ | Piyush Goyal attacks Sonia Gandhi over RCEP
(With PTI inputs)
