India's last-minute demands for concessions might jeopardise RCEP deal

Technology
India keeps making last-minute requests after it agreed to terms for the world’s largest regional trade agreement, potentially preventing Asian leaders from announcing a breakthrough on the 16-nation pact during a summit in Bangkok next week, people familiar with the situation said.
In recent days, India angered other negotiators by making additional requests on the China-backed pact covering half the world’s population, said the people, who asked not to be identified because the talks are private. Leaders of the countries had planned to announce a preliminary deal on Nov 4 when leaders gather for meetings hosted by the Association of Southeast Asian Nations, they said.
Chief negotiators are still confident they can reach a broad agreement on the deal, known as the Regional Comprehensive Economic Partnership (RCEP), during a planned meeting on Thursday in Bangkok, the people said. Any announcement would pave the way for nations to finalize the details on the legal framework in the coming months.
A breakthrough after seven years of talks would mark a win for trade liberalization in an era of rising tariffs and resurgent nationalism. The deal would also further integrate Asia’s economies with China at a time when US President Donald Trump is seeking to convince the region to shun Chinese infrastructure loans and 5G technology.

India, which has raised some tariffs under Prime Minister Narendra Modi, has long been the main holdout on an RCEP deal due to strong domestic opposition over fears the country would be flooded with cheap Chinese goods.India DemandsModi, who is fresh off a landslide re-election win in May, agreed to move ahead with the deal after receiving personal assurances from Chinese President Xi Jinping in an informal seaside meeting earlier this month, an Indian official said...READ MORE

RCEP: India is dangerously close to being an also-ran on trade and growth

International News

India’s government will shortly find itself at a fork in the road. Will it choose globalisation and export-oriented growth? Or will the isolationists in the ruling Bharatiya Janata Party win, and keep India out of a giant Indo-Pacific trading bloc?
This weekend, New Delhi hosted negotiators for the Regional Comprehensive Economic Partnership – from the 10 members of ASEAN as well as Australia, New Zealand, Japan, South Korea and China – in the hope that it could swing last-minute safeguards for some of its producers. Indian officials have stalled RCEP’s progress as much as they could, and the others are now losing patience. One way or another, the deal will have to be concluded by November, when the leaders of the 16 RCEP countries will meet in Bangkok. Malaysia’s Mahathir Mohammed, not a man known for patience, said in June that the other countries could go on without India, if necessary.
Many in New Delhi, even within the commerce ministry, would be relieved to see that happen. The belief that India has “lost” in most of its trade agreements is pervasive here. Influential lobbies tied to the country’s laggard producers are happy to remind officials how trade deficits soared with members of the Association of Southeast Asian Nations after a free-trade agreement was signed some years ago, for example. And there has always been a strong isolationist wing within the Hindu nationalist BJP – right-wing ideologues don’t just want India out of RCEP; they would prefer existing agreements with Japan, Korea and ASEAN be renegotiated, if not abandoned.
Of course, India can only be said to have “lost” if you ignore the considerable gains to consumers from cheaper imports. Once upon a time, Indian households had to worry constantly about high and variable prices of cooking oil....Read More

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Commerce Minister Piyush Goyal to skip RCEP meet in China later this week

International News

Union Commerce Minister Piyush Goyal (pictured) is set to skip the ministerial meet for the Regional Comprehensive Economic Partnership (RCEP) in Beijing, later this week.
Official sources said the latest changes in the minister's schedule was because of Parliament being extended till August 7.
So far, 26 rounds of talks have concluded, apart from six minister-level meets. The upcoming meet is set to see the Asean nations, desperate to sign the deal by 2019-end, make a crucial push to get both India and China on the same page when it comes to tariff reduction.
RCEP is India’s most ambitious trade pact, currently under negotiation. Based on India’s existing Free Trade Agreement with the 10-nation Asean bloc, 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 practise in other RCEP nations without the need for bilateral mutual recognition agreements...Read More

Revenue foregone to service Asean FTA more than doubles to Rs 26,000 crore

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