On eve of final RCEP meet, CII bats for deal

Says deal crucial for Southeast Asia access despite concerns of dumping by China

India runs the risk of being cut off from the economies in Southeast Asia and beyond if it says no the proposed Regional Comprehensive Economic Partnership (RCEP) deal, industry body Confederation of Indian Industry (CII), said.

Prime Minister Narendra Modi will sit down with RCEP leaders on Monday, the official deadline for the deal to be finalised. But India has pointed out its displeasure with regards to services trade, market access and safeguards on dumping by China.

Not being part of the RCEP will hinder investments from many countries, thus halting its efforts to increase its integration into regional and global chains, CII said.

However, a report on the RCEP — commissioned by CII and submitted to the government last year — had recommended that India should not reduce tariffs on products, the trade of which is dominated by China, under RCEP talks. Products on which anti-dumping duties are levied, had also been recommended for exclusion from the tariff reduction list. But CII President Vikram Kirloskar has now said any decision of joining an agreement of this size and magnitude must not be based on our concerns with regards to just one country. “A large section of the Indian industry has expressed serious concerns about joining RCEP on the basis of a very genuine reasons, especially pertaining to China. But free trade agreements (FTAS) must be considered from their long-term impact, both on our domestic market and the access it provides. Some of our industry may be domestically focused today, but in ten years would want the access to this most vibrant region,” he said.

The 16-member RCEP has the potential to become one of the largest economic regions, even dwarfing the European Union.