- Hopes were high a regional summit could finally wrap up negotiations on the Regional Comprehensive Economic Partnership
- But despite claims of ‘significant progress’ in the 16-nation talks, India remains a stumbling block
“When I measure the RCEP agreement, with respect to the interest of Indians, I don’t get a positive answer,” he was quoted as saying.
Henry Gao, a law professor at the Singapore Management University focusing on international trade law, said an RCEP without India would be “even more worthwhile” for the so-called RCEP-15.
He cited two reasons: India’s “low ambitions” for the pact, and the high level of integration among the countries of East and Southeast Asia which are part of the RCEP-15.
“A mega trade deal like RCEP will only further accelerate the integration process and greatly boost trade and economic growth in the region,” Gao said.
Indian media, citing government sources, said the pact’s inadequate protection against import surges, the possible circumvention of rules of origin, and a lack of “credible assurances” on market access and non-tariff barriers, proved too much for New Delhi to swallow.
facing fierce domestic criticism for being in the pact despite opposition even from
Hindu nationalist support base, last week piled on a fresh set of demands that other countries balked at, negotiators from Southeast Asian countries said over the weekend.
Indian critics of the RCEP say the deal will have a ruinous impact on the South Asian economy, which has trade deficits with the other 15 countries.
The biggest opposition has come from the country’s long protected industries, such as its dairy sector, which fears it could be wiped out by lower tariffs on Australian and New Zealand products that would result from the RCEP.
Indian government sources on Monday said the country had not made last-minute demands, but Southeast Asian negotiators said major demands were made as late as Thursday.
Gao, the Singapore-based law professor, said it “makes sense for India to stay out” as it would have faced “a lot of competition from Chinese manufactured products” if it were part of the deal.
“India could temporarily shield its firms from Chinese competition by staying out, but whether this will work in the long term is a different question,” he said.
Source: SCMP
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