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Regional Comprehensive Economic Partnership to discuss merchandise trade modalities next month |
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JAIPUR: The 16-member Regional Comprehensive Economic Partnership negotiating for a mega trade will deliberate on paper on modalities of merchandise trade, submitted by India, China and Korea, in Bangkok next month.
The Regional Comprehensive Economic Partnership (RCEP) comprises 10 ASEAN members and its six Free Trade Agreement partners -- India, China, Japan, Korea, Australia and New Zealand.
The group is negotiating a big trade agreement that aims at reducing or eliminating tariffs, facilitating movement of professionals and providing a level-playing field to each other's investors.
"India, Korea and China have submitted a paper on modalities of merchandise trade. It will be discussed during the seventh round of the RCEP meeting," a top government official told the media.
The RCEP negotiations were launched in Phnom Penh in November 2012.
Countries, including Australia and New Zealand, are asking for liberalisation of 95 per cent of merchandise trade, while the paper submitted by India, Korea and China offers to "initially" liberalise trade in goods in 40 per cent of products.
India, with its over 1.2 billion people, offers a huge domestic market.
In the sixth round of talks, concluded in India last month, the country had asked members to focus on value addition in services, besides working towards improving investment climate to spur trade and boost regional growth.
The RCEP 16 economies account for over a quarter of the world economy.
The mega trade deal aims to cover goods and services, investments, economic and technical cooperation, competition and intellectual property.
Speaking at a session on 'Mega-Regional Trading Blocs: Implications for Emerging Economies', Malaysian International Trade and Industry Minister Y B Dato Sri Mustapa Mohamed said RCEP negotiations would be concluded by end of this year.
Chinese Vice Minister of Commerce Gao Yan said that China and India are parties to RCEP negotiations which is one of the most important free trade negotiations in the Asia-Pacific region.
"China is willing to work closely with India to play a constructive role and promote a positive progress in the negotiations so as to contribute to the regional prosperity and development," Gao said.
Besides, China is also willing to continue to engage with India in discussing bilateral regional trade arrangements and launch negotiations at an appropriate time, Gao said.
Commerce Secretary Rajeev Kher said that mega trade agreements - Trade and Investment Partnership (TTIP) and Transatlantic Trade and Partnership (TTP) - "pose tremendous challenge and a phenomenal opportunity" for a developing country.
India's interests in RCEP mainly lie in the services sector. It is pressing for parallel negotiations in goods and services to ensure that the proposed agreement benefits all nations.
It is also pressing for services agreement as the sector contributes over 50 per cent to the country's economic growth. Indian IT companies have strong presence across the globe.
Source : economictimes.indiatimes.com
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