around Nov this year, i.e. around 2 months later, it's obvious most Asian countries, short of Japan and Australia, don't give a damn about Hindia. It has to be extremely far fetch to think they'd want to take Hindia side in its border dispute with China. The RCEP with Hindia would encompass about 1/3 of global GDP, without, still account for 29% of world GDP. Hindia's 4% is not as significant as they think.Time to get the RCEP done
published : 31 Aug 2020 at 12:30
writer: Nareerat WiriyapongMinisters from 15 Asia Pacific countries resumed their negotiations to forge the Regional Comprehensive Economic Partnership (RCEP) last Thursday without the participation of India, which walked away from the sprawling free-trade agreement (FTA) last November.
Speaking via teleconference instead of face-to-face, ministers said they had made "significant progress" toward signing the deal by November this year -- nearly five years behind schedule -- as nations look to revitalise economies ravaged by the prolonged coronavirus outbreak.
The RCEP members -- the 10 Asean states plus China, Japan, South Korea, Australia and New Zealand -- have also kept the door open for India, given that it had participated in the RCEP negotiations since they were launched in 2012. This, they said in a joint statement, was "also in recognition of the potential of India to contribute to the region's prosperity".
India withdrew from the RCEP negotiations amid fear that the elimination of tariffs would give a big advantage to China, whose low-priced exports are highly competitive in Indian markets. China accounted for 30% of India's growing US$160-billion trade deficit last year.
India also has deficits with 10 other RCEP participants, and its manufacturing and services sectors are not seen as competitive enough to protect the national interest. Opposition from farmers and industrialists alike forced the Delhi government to walk away from the deal.
The RCEP with India would encompass about half the world's population and one-third of global gross domestic product (GDP). Without India, the pact would still cover 2.2 billion people and account for 29% of world GDP.
India maintains that it will not join the proposed partnership in its current form. External Affairs Minister S Jaishankar told an Aug 8 webinar organised by the Confederation of Indian Industry that "it's very important not to get into false choices".
While India's immediate return is unlikely, behind-the-scenes diplomacy is continuing. "We confirmed that each country will make its own efforts in getting India back to the talks," a Japanese official of the Ministry of Economy, Trade and Industry told reporters last Thursday.
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Related link: Time to get the RCEP done
