International News
India's revenue foregone due to the trade agreement with Asean has more than doubled to nearly Rs 26,000 crore in 2018-19.The free trade area with the 10-nation Association of the Southeast Asian Nations (Asean) bloc came into effect on January 1, 2010. Exports to the 10 economies stood at $37.4 billion in 2018-19, up by 9 per cent on year. On the other hand, imports were higher at $59.31 billion, up by 25 per cent from the previous year's $47.13 billion. The figure is expected to strengthen calls for a more stringent review of existing free trade agreements (FTAs) with South Korea and Japan, which haven't been able to reduce India's trade deficit with these nations.
On the other hand, the government fears the figure for revenue foregone may be as high as Rs 60,000 crore for the proposed Regional Comprehensive Economic Partnership (RCEP) deal once it goes live, the Times of India has reported. RCEP is India's most ambitious trade pact currently under negotiation. Based on India's existing FTA with Asean, the RCEP will include all the nations with which the Asean has trade deals — New Zealand, Australia, China, India, Japan and South Korea.
New Delhi has consistently focused on services trade norms, such as those allowing the free movement of trained professionals across national boundaries. This would effectively allow Indian professionals — such as chartered accountants, teachers and nurses — to practice in other RCEP nations without the need for bilateral mutual recognition agreements.
Where things stand
Under planning since 2012, the talks have seen little movement since partner nations have been unwilling to concede on crucial issues. This includes the market access for foreign goods and reduction of import duties on them, discussion areas where India is gravely cautious since...Read More
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