Mumbai: In a huge decision, India has announced not be part of the Regional Comprehensive Economic Partnership (RCEP), with government reports claimed that the agreement does not reflect its original intent and does not address India’s key concerns.
It’s has reported that Prime Minister stands firm as key concerns not addressed (in the agreement). There will be no compromise on core interests.
India’s approach is a mixture of pragmatism, an effort to protect the interests of the poor and to benefit India’s service sector. Sources said that while avoiding opening up to the global competition in all regions, India made a strong case, which suited all countries and all regions.
Amid opposition from the Congress, Prime Minister Narendra Modi had earlier made it clear that addressing his concerns over the “continuing trade deficit” and his demands for access to the “service sector” is key to joining the RCEP agreement.
This comes after, Congress President Sonia Gandhi launched a scathing attack on the government’s economic policies, saying that the signing of the RCEP agreement would be a “physical blow” to the economy, resulting in farmers, shopkeepers and small enterprises ” Untold difficulty “.
RCEP is a trade agreement involving 16 countries, including 10 ASEAN countries and China, Japan, South Korea, Australia, New Zealand, and India. On Saturday, trade ministers from 16 RCEP countries failed to resolve outstanding issues identified by India, although back-channel talks continued on the sidelines of the ASEAN summit.
ASEAN leaders had originally proposed the idea of RCEP in 2012 when it was endorsed by the then Prime Minister Manmohan Singh’s Congress-led UPA government — talks began in 2013.
(With Agency Inputs)