India must convince industry of RCEP’s benefits: Australia

  1. Australian High Commissioner to India has said that Indian government must convince the industry of Regional Comprehensive Economic Partnership(RCEP) benefits.
  2. Recently,Indian Commerce minister had met industry bodies to review issues that India would need to keep in mind when continuing deliberations on the RCEP in China.
  3. The associations had said that industries are apprehensive of India signing RCEP because of fears that China will use it to enter and dominate the Indian market by dumping it with cheaper goods.
  4. However,the Australian envoy has said that Indian government should explain to the industry that RCEP will open the door for Indian industry to multiple markets.
  5. The RCEP will also allow Indian industry access to a number of countries in the region and is a pathway to India’s economic development.
  6. Further,she said that other challenge would be if RCEP countries decide to go ahead without countries like India and China as these are the two biggest economies of the region.
  7. 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).
  8. 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.