Ministers, RSS for guarding interests of Indian industry
Days ahead of the ministerial meeting of Regional Comprehensive Economic Partnership (RCEP) this week, some ministers, leaders of the Bharatiya Janata Party (BJP), and the party’s ideological mentor, the Rashtriya Swayamsevak Sangh (RSS) have cautioned the union government against signing the treaty without adequate safeguards to protect the interests of Indian industry, agriculture and dairy farmers, three people aware of the development said on condition of anonymity.
Hectic parleys have been on since Monday over matters related to Regional Comprehensive Economic Partnership (RCEP) in the government, theBhartiya Janta Party (BJP), and among the party’s associates.
The general consensus among experts is that India needs to firm up its decision ahead of the crucial ministerial meeting in Bangkok from October 10-12.
India now has a limited window as the 16-member trade block in the making is keen to conclude the treaty by November this year with or without India.
The agreement is expected to be signed next year.
The Regional Comprehensive Economic Partnership (RCEP) agreement is being negotiated between the 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and their six free trade agreement (FTA) partners -- China, India, Japan, Korea, Australia and New Zealand.
So far, four crucial meetings have taken place since Monday. Prime Minister Narendra Modi met key ministers, including home minister Amit Shah, external affairs minister S Jaishankar, finance minister Nirmala Sitharaman, commerce and industry minister Piyush Goyal and minister of state for commerce and industry Hardeep Singh Puri. The other meeting was held at the home ministry.
The BJP also held a round-table on the issue. An informal interaction was held between Shah, Goyal and BJP’s organisations general secretary BL Santhosh with the functionaries of Rashtriya Swayamsevak Sangh (RSS) affiliate Bharatiya Mazdoor Sangh.
At a closed door meeting helmed by Santhosh, Bhartiya Janta Party (BJP) spokesperson on economic issues, Gopal Agarwal and Vijay Chauthaiwale, who is in charge of the party’s foreign affairs department on Monday, stakeholders shared their concerns.
The big issues were China and what the agreement would do to domestic manufacturers, the second person said.
India’s current trade imbalance with China was discussed, this person added, as were the ongoing agrarian crisis and the fact that while free trade agreements may have reduced tariff barriers for Indian exporters, they continue to face non-tariff and regulatory barriers, especially in services trade.
“What is worrying stakeholders is the existing trade deficit with ASEAN, Korea and Japan which has grown to $24 billion in FY 2017 from $15 billion in FY 2011.
This imbalance has deteriorated in 13 of the 21 sectors, including chemicals, rubber, minerals, leather, gems and jewellery, metals and medical instruments ” the second person said.
On Tuesday, RSS chief Mohan Bhagwat also called for trade agreements that protect India’s interests and are drawn up on the country’s terms.
Though Bhagwat did not name Regional Comprehensive Economic Partnership (RCEP); his statement is seen to be in reference to the churning within the government over the signing of the agreement.
“It was pointed out that China’s trade surplus with India was $ 0.6 billion in FY 2001 and reached $ 52 billion in FY 2017; China alone accounts for almost half of India’s total trade deficit,” the second person said.
The third person said that at the closed door Bhartiya Janta Party (BJP) meeting, the need to protect the domestic market was also underlined and concern expressed that the agreement would hurt farmers.
“There is a section of manufacturers that feels Indian companies will be put at a disadvantageous position by making them compete with large multinational companies including those from China,” this person added.