After Demonetization and GST, RCEP deal will be another ‘Jolt’ to Economy: Congress

Congress claimed that RCEP deal would be another jolt to Indian economy in similar lines to Demonetization and GST. The Regional Comprehensive Economic Partnership (RCEP) is yet to be the world’s largest economic trade pact. It is proposed to be a free trade agreement (FTA) between 16 countries. The purpose of the treaty is to simplify trade and eliminate barriers among the participants.

India’s Hindering the Commencement of the Pact

India was in unison with the terms of RCEP that were due to come into force on November 4. However, things have started to spiral out when India proposed last-minute demands. Thus, possibly averting the announcement of the 16- nation pack and causing a threat to the breakthrough deal. Further, this infuriated a few delegates gathered for the meetings hosted by the association of Southeast Asian Nation.

India’s reasoning to oppose the deal

Prominently, India’s holdout is strong because of domestic opposition from primary industries, cultivators, and civil society groups. Additionally, opposition parties rage as they believe China will forcefully import cheaper goods into India using RCEP. Supporting this is the fact that imports from China are 4 times higher than Indian imports to China.

Congress highlights their suspicions towards the deal

Congress seems to agree with the opposition groups. Moreover, they predicted that RCEP would be another bump added to the country’s economy alongside demonetization and improper implementation of GST.

Congress Spokesperson, Gourav Vallabh advised the Prime Minister and Minister of Commerce and Industry must explain the cost benefits of the deal to the citizens before signing it. Despite the no-barrier trade, he alleged the deal to have a significant effect on farmers as well as a negative impact on intellectual property rights (IPR) using seeds and services related to IT industries.

This suspected bump in the Indian economy would change the make in India scheme to sale in India program. This RCEP deal that the government is yet to finalize has resolved the scheme to sell in India, make elsewhere.

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