RCEP agreement: Can India get a good deal?

There is a general feeling that India’s trade agreements have not worked out well. The country is also not in any mega trade pact that includes China, which is a part of RCEP. There is concern that Chinese imports will become a bigger problem if a deal is signed. ET explains.

RCEP (Regional Comprehensive Economic Partnership) is a trade pact being negotiated by 16 countries. Negotiations were formally launched in November 2012 at the Asean summit in Combodia. The trade pact is close to being concluded.

ASEAN (10 COUNTRIES):
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam China Japan India Australia South Korea New Zealand.


Sectoral Issues
*Dairy, iron and steel industries want protection from imports

*Textile industry already facing competition, fears job losses

* India’s fisherfolk threatened by automated fishing trawlers Chemicals and plastics industry fears smaller players will be hurt by imports


Opportunities
* India will for first time join a big regional trade pact

* It can make big gains if domestic manufacturing becomes competitive

* Pharma industry confident of market access

* Cotton yarn sees big market India can extract some gains for its services industry

Threats
* FTA with China may boost imports

* Disproportionate loss of customs revenue

* Trade gap may worsen