India Backs Out on Zero Duty in RCEP

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RCEP members, which include the 10-member ASEAN, India, China, Japan, South Korea, Australia and New Zealand, are seeking to create one of the largest free trade blocs in the world as the countries account for 45 per cent of the world population and over $21 trillion of gross domestic product.

“We have made it clear at the Jakarta meeting that if other members want a reasonable level of commitment from us in terms of tariff reduction in goods, they have to agree to our terms that we will not be eliminating duties in most sectors,” an official in Commerce Ministry has commented.

“So far, offers have been made in over 100 services sub-sectors, but serious offers have not been made in mode 4 which relates to movement professionals and workers. Some kind of bench-marking of offers has to be done in modes, failing which we will not be in a position to be generous in goods,” the official said.

India’s current position on goods is a departure from its earlier stand when it had agreed, as part of its initial offer, to eliminate tariffs on 42.5 per cent of goods from China, New Zealand and Australia, on 65 per cent of goods from Japan and South Korea and on 80 per cent of goods from the ASEAN.

The Centre decided to change its position on goods as complaints from the Indian industry on the negative impact of the older trade pacts with countries such as Japan and South Korea have been growing.