India will not join mega free trade pact as core issues still unresolved
After years of negotiations, India on Monday pulled out of the China-backed mega Regional Comprehensive Economic Partnership (RCEP) over unresolved "core concerns", with Prime Minister Narendra Modi saying the proposed deal would have adverse impact on the lives and livelihoods of all Indians.
Modi conveyed India's decision not to join the RCEP deal at a summit meeting of the 16nation bloc, effectively wrecking its aim to create the world's largest free trade area having half of the world's population.
“The present form of the RCEP Agreement does not fully reflect the basic spirt and the agreed guiding principles of the RCEP. It also does not address satisfactorily India's outstanding issues and concerns. In such a situation, it is not possible for India to join RCEP Agreement," Modi said.
Sources said China was forcefully pushing for inking the deal during the RCEP summit in an attempt to counter-balance the impact of its lingering trade war with the US as well as to project the region's economic might to the West.
"India stands for greater regional integration as well as for freer trade and adherence to a rule-based international order. India has been pro-actively, constructively and meaningfully engaged in the RCEP negotiations since inception. India has worked for the cherished objective of striking balance, in the spirit of give and take," the prime minister said.
"Today, when we look around we see during seven years of RCEP negotiations, many things, including the global economic and trade scenarios have changed. We cannot overlook these changes," he added.
"When I measure the RCEP Agreement with respect to the interests of all Indians, I do not get a positive answer. Therefore, neither the Talisman of Gandhiji nor my own conscience permit me to join RCEP," Modi said.
Government sources said the prime minister stood firm on not becoming a part of the RCEP deal as India's key concerns were not addressed.
The RCEP negotiations were launched by ASEAN leaders and six other countries during the 21st ASEAN Summit in Phnom Penh in November 2012. The objective of launching RCEP negotiations was to achieve a modern, comprehensive, highquality, and mutually beneficial economic partnership agreement among the ASEAN member States and its FTA partners.