India Received A Package Will India Join RCEP

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“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.”
RCEP is a proposed Free Trade Agreement (FTA)

WHY INDIA DIDN’T JOIN RCEP?

Inadequate protection against surges in imports.
Cheaper products from China would “flood” the market. (No anti-dumping duty)
India has raised import duties on several products between 2014 and 2019.
Using a base year before 2014 would mean a drastic drop in the import duties on various products.

Members of the Regional Comprehensive Economic Partnership have offered India a package to return to the negotiating table,
Taking into account the country’s concerns over tariff base rates and special trade safeguards.
The RCEP package recognises India’s preference to use more recent most-favoured nation tariff rates than the 2014 base rates.
Only to limited number of products of concern to India
The RCEP agreed in principle to incorporate a volume- based safeguard mechanism and Would welcome an indication of the products to which India would seek to apply the special safeguard.
The RCEP agreed in principle to incorporate a volume- based safeguard mechanism and
Members of the trade bloc urged India to convey its initial response to the package by May 15 as the Indo-Pacific region braces for a post-Covid-19 economic order.

Some RCEP members said India has much to contribute, not only in terms of its huge market, but also its participation in regional affairs as a whole.
Covid-19 demonstrated India’s contribution in terms of active pharmaceutical ingredients and the medical capacity to support others, as well as technical and medical research.

It will give India first mover’s advantage.
India would give up the chance to frame the grouping’s rules and investment standards if it fails to join the RCEP at this
India enjoys a comparative advantage in the services sector such as information and communication technology, healthcare, and education services etc.
Thus, RCEP will create opportunities for Indian companies to access new markets.

China is known to have used non-tariff barriers in the past to prevent India from growing its exports to the country.
Concerns on a “possible circumvention” of rules of origin — the criteria used to determine the national source of a product — were also not addressed.