Ahead of the Regional Comprehensive Economic Partnership (RCEP) meeting,the Aluminium Association of India(AAI) has written to the Government seeking protection from cheap imports.
The AAI has said that if India joins the RCEP then such a move would pave the way for zero duty on imports of copper and aluminium which would cripple the domestic sector and stall further investments.
This statement came in the backdrop of RCEP countries meeting on May 24,2019 where they are trying to conclude a treaty that would eliminate input tariffs on about 90% of traded goods.
RCEP is proposed mega trade pact between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing Free trade agreements(FTA’s)(Australia, China, India, Japan, South Korea and New Zealand).
It aims to boost goods trade by eliminating most tariff and non-tariff barriers — a move that is expected to provide the region’s consumers greater choice of quality products at affordable rates.It also seeks to liberalise investment norms and do away with services trade restrictions.
India has repeatedly advocated that the agreement needs to be comprehensive in nature.India is concerned about (a)trade pact will allow greater access to Chinese goods which may have an impact on the Indian manufacturing sector (b)There are demands by other RCEP countries for lowering customs duties on a number of products and greater access to foreign goods in the Indian market.
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