New Delhi: With apprehensions that China may gain access to data, the RSS affiliate Swadeshi Jagaran Manch (SJM) has cautioned the Centre from concluding any pact on e-commerce with 16 nations grouping in the Regional Comprehensive Economic Partnership (RCEP) in Incheon, South Korea. The SJM has argued that the Centre should not compromise the sovereignty of the nation in framing rules and legislating on e-commerce by binding the country in a pact at the RCEP summit on the lines of the World Trade Organisation (WTO).
The SJM convenor Ashwani Mahajan has shot off a letter to Union Minister of Commerce Suresh Prabhu and Union Minister for Information and Technology Ravi Shankar Prasad wherein he has argued that any pact would allow China to gain control of the e-commerce space in the country, which would further aggravate the adverse balance of trade with the eastern neighbour. The RCEP negotiations will begin from Sunday in Incheon, South Korea, from Sunday.
Speaking to The New Indian Express, Mahajan said that RCEP negotiations beginning Sunday is a grouping of 16 nations, including Asean countries, China and a few others, which is seeking to conclude an agreement on e-commerce. “We already have a comprehensive trade pact with Asean. But we should stay away from any pact with RCEP since it will allow China to access Indian e-commerce space, which is already being monopolised by Chinese firms through their investments in Flipkart and PayTM. At the same time, we may also be compromising on data security,” Mahajan said.
Claiming that the e-commerce space is still evolving in the country with 3D e-commerce now gaining popularity wherein customised products are being manufactured for delivery to the customers, Mahajan noted that India should adopt the wait and watch strategy at the 20th rounds of negotiations at Incheon, as much more discussions within the country is still awaited.
Stating that proposals on the table in Incheon include doing away with tariff on e-trading, the SJM has told the two Union Ministers that it would have adverse impact on both the small traders and the revenue of the government, which may have to forego the customs duty. “Duty free entry of digitised, digitisable and even manufactured goods will adversely affect Indian manufacturing capacity” the SJM has warned the Centre in its letter. The SJM has also claimed that besides China the MNCs based out of the US are also lobbying through Japan for India to agree to a pact at RCEP in Incheon. Incidentally, Chinese e-commerce giant Alibaba and Japanese venture capitalist SoftBank have emerged as big investors in the Indian e-commerce space.
The SJM has, however, lauded the government for taking a firm stand at the WTO negotiations at Marrakash wherein India firmly, said Mahajan, rejected discussions on any new subject until Doha round of negotiations, including agriculture, are concluded.