NEW DELHI: Ahead of the ASEAN and RCEP summits to be held over the next few days in Thailand, Prime Minister Narendra Modi on Saturday said that addressing India’s concerns on “unsustainable trade deficits” was crucial for a win-win RCEP deal.
The Regional Comprehensive Economic Partnership (RCEP) is a proposed trade bloc comprising ASEAN’s (Association of Southeast Asian Nations) 10 nations and their free trade partners: India, China, Japan, South Korea, Australia and New Zealand.
Negotiators from the 16 countries have been trying to hammer an acceptable deal for several months and sources say India is currently the only country to hold out.
However, Modi, who arrived in Bangkok on Saturday, told Bangkok Post that the proposals India has submitted are “reasonable” and that it seeks “balance”.
“India remains committed to a comprehensive and balanced outcome from the ongoing RCEP negotiations. Their successful conclusion is in the interest of everyone involved. Hence, India seeks balance across goods, services and investments, and also within each pillar,” he said.
While Modi went on to say that India recognises the high ambitions its partners have for the deal, he also stressed what India was looking for.
“We too would like a win-win outcome. For this, addressing our concerns over unsustainable trade deficits is important. It needs to be recognised that opening the vast Indian market must be matched by openings in some areas where our businesses can also benefit,” he pointed out.
According to sources, India has asked for changes in several areas including stricter rules of origin and protection for its farming, dairy and telecom sectors. Officials say flashpoints in the negotiations are likely to arise from demands on rules of origin and electronic commerce, since China would demand back-loading of tariffs on a host of goods.
“We have put forward reasonable proposals in a clear manner and are engaged in negotiations with sincerity. We would like to see commensurate levels of ambition on services from many of our partners, even as we are ready to address their sensitivities,” Modi said.
India’s demands
According to sources, India has asked for changes in several areas including stricter rules of origin and protection for its farming, dairy and telecom sectors.