#Prime Minister Modi has categorically refused to give India's consent to the RCEP agreement. For 'Nation First', Modi (PM Narendra Modi) is not only a declaration of his party but also a keynote of his NDA Government's decisions. This thing is proved once again when the Prime Minister has categorically refused to give India's consent to the RCEP agreement in Bangkok.
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#OPINION : 06/11/2019 : 1945.
For 'Nation First', Modi (PM Narendra Modi) is not only a declaration of his party but also a keynote of his NDA Government's decisions. This thing is proved once again when the Prime Minister has categorically refused to give India's consent to the RCEP agreement in Bangkok.
For 'Nation First', Prime Minister Narendra Modi (Prime Minister Narendra Modi), it is not only the declaration of his party but also the keynote of his NDA government's decisions. This was proved once again when the Prime Minister has categorically refused to give India's consent to the Regional Comprehensive Economic Partnership (RCEP) agreement in Bangkok. This is hidden at the international level by the Prime Minister's attitude to deal with the domestic and foreign policy decisions taken in the first five years of the Modi government and six months of the second term, and with the big powers of the world like America, China It is no longer that today the world faces a strong India under the leadership of Modi. Not from the earlier India, which often used to succeed in capturing big powers according to its interests. Especially in the case of trade and commerce. Prime Minister Modi brilliantly tackled international diplomacy and conveyed to the world that India, led by him, will not allow his interests to be affected at all. RCEP countries must have felt it once again.
This group of 16 ASEAN countries, including the 10 ASEAN countries and their largest trade partner countries, including India, China, Japan, Korea, New Zealand and Australia - well known to the firm nature of Prime Minister Narendra Modi - called the Regional Comprehensive Economic Partnership Is, for India's apparent denial is probably an unlikely but necessary setback. But this has also secured the interests of India's farmers, dairymen, small enterprises, factories, professionals, service sector runners, workers and consumers. The biggest thing is that these sectors of India have also survived the apprehension of cheap Chinese goods. The dairy industry has also been protected from the onslaught of dairy products in Australia and New Zealand. In the event of India signing it, we would have to cut the import duty on goods imported from these countries by 90%,
Modi is known as a leader in international diplomatic circles for his hard bargain in India's interests and this is not the first time that India has shown determination in international trade and related negotiations under the leadership of Prime Minister Modi. Although US President Donald Trump is known for his country's interests as a leader of strict bargaining with other countries of the world, but he himself has described Modi as a 'Tough Negotiator'. Trump must have had this experience in the interactions of the two countries during Modi's visit to America.
Ben Rhodes, an assistant to Trump's predecessor Barack Obama, also has the experience that during the summit in Paris on climate change, Prime Minister Modi did not give India's consent until it was confident that the agreement would put any interest on India's interests Will not be affected and India, ready to stand in the pantheon of developed countries, should not be tried to prevent futile from structural development in the name of carbon emissions G Rhodes experiences that Obama had a difficult time persuading Modi.
Indonesia, Thailand, Singapore, Malaysia, Philippines, Vietnam, Myanmar, Cambodia, Laos and Brunei have increased India's trade with these ASEAN countries over the past few years and these countries are also hopeful that India's signing of the RCEP agreement They will get a big market. These countries were taking a keen interest in increasing trade with India, but their country's interests were first for the Prime Minister of the new India, so they clearly declared that "The current draft of the RCEP should be made with its original spirit and its consensus. It does not fully reveal the guiding principles nor does it (in the changed economic and trade scenario) fully address India's pending issues and concerns. That are the same. In this situation it is not possible for India to join the RCEP agreement. The interests of our farmers, traders, professionals and industries are associated in such decisions. Equally important are our workers and consumers who make India a big market and a big economy. When I look at the RCEP from the perspective of the interests of all Indians, I do not get any positive answer, so neither Gandhiji's principle nor my conscience allows me to join the RCEP. "Modi said that such decisions While doing this, we should consider the poorest person of the society. The Prime Minister did not forget to remind these countries of the history when "thousands of years before the RCEP was formed, India's businessmen, entrepreneurs and ordinary people forged unbreakable relationships with the region, and these relations have contributed significantly to our shared prosperity." When I look at the RCEP from the perspective of the interests of all Indians, I do not get any positive answer, so neither Gandhiji's principle nor my conscience allows me to join the RCEP. "Modi said that such decisions While doing this, we should consider the poorest person of the society. The Prime Minister did not forget to remind these countries of the history when "thousands of years before the RCEP was formed, India's businessmen, entrepreneurs and ordinary people forged unbreakable relationships with the region, and these relations have contributed significantly to our shared prosperity." When I look at the RCEP from the perspective of the interests of all Indians, I do not get any positive answer, so neither Gandhiji's principle nor my conscience allows me to join the RCEP. "Modi said that such decisions While doing this, we should consider the poorest person of the society. The Prime Minister did not forget to remind these countries of the history when "thousands of years before the RCEP was formed, India's businessmen, entrepreneurs and ordinary people forged unbreakable relationships with the region, and these relations have contributed significantly to our shared prosperity."
Modi's leadership: Emerging India, led by Modi, has taken this stance at a time when the US-China trade war has caused a disruption in world trade. In such a situation, this partnership of 16 countries can emerge as the largest trade group in the world. The geographical area comprising countries like China, Japan and the ASEAN countries and their trade partners (including India) comprise about half of the world's population. It contributes 25% to the world gross domestic product (GDP). About one third of the world's trade takes place in this region. The big decision not to join such a group cannot be taken without the strong will to keep the interests of our nation above that. India has shown that will under Modi's leadership.
After India's refusal, the remaining 15 countries have decided that they intend to finalize this agreement next year. China is worried about consuming the products that are gathering here due to the trade tightness from the US, but most of the RCEP countries feel that if India stays in it, this partnership will be bigger, wider and better. Australian Prime Minister Scott Morrison rightly said that it is appropriate to be patient about this, but it is certain that this agreement will not be complete without resolving India's concerns. If the remaining 15 countries signed on to India, the group would cease to be a Chinese-dominated group, which would neither have a large market with good purchasing potential nor a multi-talented workforce. India has its hand up because it has both these things and the biggest thing is that a capable leadership like Modi, under whose 'Act East' policy, India has led from Japan to all the Southeast Asian countries in the last five-six years. Have formed a relationship of mutual interest with each other. In such a situation, India is the only one who can become the savior of RCEP.
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Prime Minister Narendra Modi will inaugurate the Fifth India International Science Festival at 4:00 PM today. He will address the gathering, being held in Kolkata, through video conference.
The prime objective of the festival is to instill scientific temper among people, showcase India’s contribution in the field of S&T and encourage translation of its benefits to people. It aims to build a strategy for inclusive advancement of Science and Technology.
The Theme of the Festival this year is- RISEN India- Research, Innovation, and Science Empowering the Nation.
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Addressing on the occasion, Prime Minister said the theme of the festival “RISEN: Research, Innovation and Science Empowering the Nation” reflects the aspirations of 21st century India.
He said science and technology has a major impact on society, and therefore government is providing the Institutional Support for both Invention and Innovation. Advocating for a strong ecosystem supporting Science and Technology, he said every effort is being taken to support innovation in the country. In this context, he mentioned that over 5 thousand Atal Tinkering Labs, more than 200 Atal Incubation centres have been established.
Prime Minster said, “We need to think as to how science can be helpful in making our living easy. And that’s why science for society has a great relevance. When every scientist and citizen shall think and act on these lines, then the country would advance.”
Prime Minster urged everyone to focus on the long term solutions and long term benefits that science can provide us. He said, “you should also be constantly careful about the international laws and standards.”
He said, “We all know very well that technology is a result of two factors – the existence of a problem and our experiments to solve those problems.”
He said, “There are no failures in Science. There are only efforts, experiments and success. If you keep this in mind while working then you would not face any difficulties either in your scientific investigation or in your life.”
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Science and technology ecosystem should be impactful as well as inspiring: PM Modi
Scientific Temper wipes out superstition: PM Modi
There are no failures in science; there are only efforts, experiments and success: PM
The Prime Minister Narendra Modi, today, inaugurated via video conference, were 5 healthy India International Science Festival, therefore, Kolkata.
Addressing on the occasion, Prime Minister said the theme of the festival "RISEN: Research, Innovation and Science Empowering the Nation" involving the aspirations of 21 st century India.
He said science and technology has a major impact on society, and therefore government is providing the institutional support for both invention and innovation. Advocating for a strong ecosystem supporting science and technology, he said every effort is being taken to support innovation in the country. In this context, he mentioned that over 5 thousand Atal Tinkering Labs, more than 200 Atal Incubation centers have been established.
Prime Minster said, “We need to think as to how science can be helpful in making our living easy. And that's why science for society has a great relevance. When every scientist and citizen shall think and act on these lines, then the country would advance. "
Prime Minster urged everyone to focus on the long term solutions and long term benefits that science can provide us. He said, "You should also be constantly careful about the international laws and standards."
He said, "We all know very well that technology is a result of two factors - the existence of a problem and our experiments to solve those problems."
He said, “There are no failures in science. There are only efforts, experiments and success. If you keep this in mind while working then you would not face any difficulties either in your scientific investigation or in your life. "
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Snapshot :
The move will have significant benefits for India’s farmers, the dairy sector, and other local industries, guarding them against the likes of China who would have otherwise used the RCEP to dump their cheap products in the Indian market. The move will also benefit the service sector.
The decision to walk out of the RCEP stems from the weak history India has had with free trade agreements under the UPA (United Progressive Alliance) regime before 2014.
#India signed a free trade agreement (FTA) with countries in the ASEAN bloc and South Korea in 2010. Separate FTAs were also signed with Malaysia and Japan in 2011.
#The first UPA regime under Dr Manmohan Singh had also explored the possibility of an FTA with China in 2007, a move that would have devastated the local industries.
#However, these FTAs did little to cater to India’s interests. Between 2004 and 2014, India’s trade deficit with RCEP nations increased eleven times, from $7 billion in 2004 to around $78 billion in 2014. India’s trade deficit with China alone is more than $50 billion.
While one may attribute the deficit to India’s low level of exports, a problem Modi government has been trying to tackle through programs like ‘Make in India’, the truth remains that domestic industries have suffered hugely due to cheap imports and dumping practices of China.
While India eliminated tariffs on 74 per cent of tariff lines (codes for items/products), there was significant trade distortion as Indonesia eliminated tariffs only on 50 per cent tariff lines and Vietnam on 69 per cent. Similar practices by other nations led to India suffering under these FTAs.
#The story remains the same with South Korea. India signed the Comprehensive Economic Partnership Agreement (CEPA) with South Korea in 2009.
While under CEPA, South Korea’s exports to India almost doubled between 2009 and 2019 from $8.5 billion to $16.7 billion. However, India’s exports have shown weak growth, going from $3.42 billion in 2009 to a mere $4.71 billion in 2018-19.
Put simply, India’s export sector has failed to tap the South Korean market. Steel, where 100 per cent tariff reductions were made available to India under the CEPA, the exports have remained stagnant at $339 million in 2017-18 from $330 million in 2010-11.
#Similar imbalance with other countries of the RCEP has led to severe trade distortion and flooding of the Indian market with cheap Chinese products.
#While it may benefit the consumer due to low prices, it eliminates the possibility, in the long run, of the emergence of the local industries, thus having a depreciating impact on employment, innovation, and capacity building.
A number of unresolved issues resulted in India choosing to stay away from the RCEP.
One, there was the threat of circumvention of Rules of Origin due to ‘tariff differential’.
Put simply, countries within the RCEP could take advantage of the tariff differential given to another country in tariff lines (classification codes of goods or products) not offered to it. Thus, China could, for instance, use the tariffs offered to Vietnam, to dump its products in the Indian market.
Two, India wanted a change in the base rate of customs duty from 2014 to 2019. Assuming RCEP was signed now, it wouldn’t become operational till 2022.
However, if a change in the base rate was not done, custom duties from 2014 would be applied in 2022, negating the change in the base rate due to current market forces and consumer dynamics.
For instance, local Indian industries that have witnessed strong emergence post-2014 under the ‘Make in India’ programme would have suffered due to the application of customs duties that do not take into account the contemporary market realities.
Yet another point is that while the change in the base rate would have surely helped Indian industries, it would have been beneficial for all members of the RCEP too.
Three, there was the request to enable tariff lines for Auto Trigger Safeguard Mechanism (ATSM) with a review clause at a periodicity of three years.
This would have ensured safeguards against import surges and dumping practices that countries like China engage in. Again, enabling tariff lines for ATSM would have been helpful for all the RCEP members.
Four, India wanted the exclusion of the Most Favoured Nation (MFN) obligation, stated within the investment chapter of the RCEP.
An MFN, though commercial in nature, is usually coupled with diplomatic and strategic interests, and thus, cannot be handed over to countries with which India shares a border or a geopolitical dispute.
Within the RCEP, allowing an MFN status to all members would not have been beneficial for India at all.
Five, there was also the issue of carving out sensitive sectors from the ratchet obligations under the investment clause of the RCEP.
For instance, if India were to give any benefits to France or the United States for a defence programme, the same benefits would have had to be given to all RCEP members, including China.
The same would have applied for other sectors too. Given how the allocation of some of these benefits stem from geopolitical interests, this clause within the RCEP was strongly against India’s interests and capacity building in the long run.
Already, India is embarking on several measures to undo the ills of the previous FTAs and to further secure local interests.
#One, the import of agarbatti, a significant import, has been moved to the ‘restricted category’ from the ‘free category’.
This will be helpful in securing the local industries. Also, a safeguard duty of 5 per cent has been imposed on palm oil imports to secure local interests and help farmers.
#Two, to help the local cashew planters, MSP of Cashew Kernel Broken has been raised to Rs 680/kg from Rs 288/kg.
For Cashew Kernel Whole, it has been raised to Rs 720/kg from Rs 400/kg. Import of peas and pulses has also been restricted. In FY 2019-20, import of only 4 lakh MT (metric tonne) of Toor and 3 lakh MT of Moong and Urad would be allowed.
#Three, a Steel Imports Monitoring System (SIMS) has been launched to monitor the import of steel. Stakeholders in the steel industry will have all the information pertaining to steel imports, and thus, required policy intervention and planning would be possible.
#Four, to tackle the shortage of maize (feed grade) for poultry and dairy farming, customs duty has been lowered to 15 per cent from the earlier 50 per cent for the import of 5 lakh MT of maize. This will be a booster for the local poultry and dairy industry.
Five, and lastly, several other steps are being taken. For instance, the government has restricted imports of the national flag that violated the flag code. There are other measures also in the pipeline to secure the interests of local farmers and fishermen.
Moreover, options for elaborate FTAs are being explored with the European Union, United Kingdom (keeping Brexit in mind), and the United States.
While China’s reliance over its exports has decreased in the last few years, the recent trade war, the slowing economy, and the challenge to sustain its employment numbers may have inspired China to embark on another decade of driving cheap exports and flooding the markets of India, ASEAN, Australia, South Korea, and Japan.
#Thus, while India has taken the path to secure its local interests, it remains to be seen how China will use the clauses within the RCEP to treat the other 14 member nations across the 2020s.
JAY HIND
JAY BHARATHAM
VANDHE MATHARAM
BHARAT MATHA KI JAY.
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#OPINION : 06/11/2019 : 1945.
#It is no longer easy for PM Narendra Modi to take India : Media Coverage : Jagdish Upasane : News18 : 06 Nov, 2019 : PMINDIA.
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For 'Nation First', Modi (PM Narendra Modi) is not only a declaration of his party but also a keynote of his NDA Government's decisions. This thing is proved once again when the Prime Minister has categorically refused to give India's consent to the RCEP agreement in Bangkok.
For 'Nation First', Prime Minister Narendra Modi (Prime Minister Narendra Modi), it is not only the declaration of his party but also the keynote of his NDA government's decisions. This was proved once again when the Prime Minister has categorically refused to give India's consent to the Regional Comprehensive Economic Partnership (RCEP) agreement in Bangkok. This is hidden at the international level by the Prime Minister's attitude to deal with the domestic and foreign policy decisions taken in the first five years of the Modi government and six months of the second term, and with the big powers of the world like America, China It is no longer that today the world faces a strong India under the leadership of Modi. Not from the earlier India, which often used to succeed in capturing big powers according to its interests. Especially in the case of trade and commerce. Prime Minister Modi brilliantly tackled international diplomacy and conveyed to the world that India, led by him, will not allow his interests to be affected at all. RCEP countries must have felt it once again.
#1. India got victory on in-fronts :
#2. Modi is considered a leader of hard bargaining in the matter of Indian interests :
#Modi-Trump US President Donald Trump is known for his country's interests as a leader of tough bargaining with other countries of the world, but he himself has called Modi a 'tuff negotiator'.
Ben Rhodes, an assistant to Trump's predecessor Barack Obama, also has the experience that during the summit in Paris on climate change, Prime Minister Modi did not give India's consent until it was confident that the agreement would put any interest on India's interests Will not be affected and India, ready to stand in the pantheon of developed countries, should not be tried to prevent futile from structural development in the name of carbon emissions G Rhodes experiences that Obama had a difficult time persuading Modi.
#3. When making decisions, Modi considers the poorest person in the society :
#4. India's growing will under :
#5. India is the only one who can become the savior of RCEP :
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NOTE :
1. #PM to inaugurate Fifth India International Science Festival today : 05 Nov, 2019 : News Updates : PMINDIA.
-------------------------------------------------------------------------------------------------------------------------Prime Minister Narendra Modi will inaugurate the Fifth India International Science Festival at 4:00 PM today. He will address the gathering, being held in Kolkata, through video conference.
The prime objective of the festival is to instill scientific temper among people, showcase India’s contribution in the field of S&T and encourage translation of its benefits to people. It aims to build a strategy for inclusive advancement of Science and Technology.
The Theme of the Festival this year is- RISEN India- Research, Innovation, and Science Empowering the Nation.
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2. #PM’s address at ‘5th India international Science Festival’ via video conferencing : 05 Nov, 2019The Prime Minister Narendra Modi, today, inaugurated via video conference, the 5th India International Science Festival at Kolkata.
Addressing on the occasion, Prime Minister said the theme of the festival “RISEN: Research, Innovation and Science Empowering the Nation” reflects the aspirations of 21st century India.
He said science and technology has a major impact on society, and therefore government is providing the Institutional Support for both Invention and Innovation. Advocating for a strong ecosystem supporting Science and Technology, he said every effort is being taken to support innovation in the country. In this context, he mentioned that over 5 thousand Atal Tinkering Labs, more than 200 Atal Incubation centres have been established.
Prime Minster said, “We need to think as to how science can be helpful in making our living easy. And that’s why science for society has a great relevance. When every scientist and citizen shall think and act on these lines, then the country would advance.”
Prime Minster urged everyone to focus on the long term solutions and long term benefits that science can provide us. He said, “you should also be constantly careful about the international laws and standards.”
He said, “We all know very well that technology is a result of two factors – the existence of a problem and our experiments to solve those problems.”
He said, “There are no failures in Science. There are only efforts, experiments and success. If you keep this in mind while working then you would not face any difficulties either in your scientific investigation or in your life.”
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3. #PM Modi inaugurates 5th India International Science Festival in Kolkata via video conferencing : November 05, 2019
Science and technology ecosystem should be impactful as well as inspiring: PM Modi
Scientific Temper wipes out superstition: PM Modi
There are no failures in science; there are only efforts, experiments and success: PM
The Prime Minister Narendra Modi, today, inaugurated via video conference, were 5 healthy India International Science Festival, therefore, Kolkata.
Addressing on the occasion, Prime Minister said the theme of the festival "RISEN: Research, Innovation and Science Empowering the Nation" involving the aspirations of 21 st century India.
He said science and technology has a major impact on society, and therefore government is providing the institutional support for both invention and innovation. Advocating for a strong ecosystem supporting science and technology, he said every effort is being taken to support innovation in the country. In this context, he mentioned that over 5 thousand Atal Tinkering Labs, more than 200 Atal Incubation centers have been established.
Prime Minster said, “We need to think as to how science can be helpful in making our living easy. And that's why science for society has a great relevance. When every scientist and citizen shall think and act on these lines, then the country would advance. "
Prime Minster urged everyone to focus on the long term solutions and long term benefits that science can provide us. He said, "You should also be constantly careful about the international laws and standards."
He said, "We all know very well that technology is a result of two factors - the existence of a problem and our experiments to solve those problems."
He said, “There are no failures in science. There are only efforts, experiments and success. If you keep this in mind while working then you would not face any difficulties either in your scientific investigation or in your life. "
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WATCH VIDEO
https://youtu.be/bXjRi7Tyu44;=======================================================================
OPINION : PMO INDIA REPORT CARD
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#Going by Chinese history, the RCEP agreement may come at a hefty cost for the 14 nations who signed it with China, but India is saved.
#Explained: Why Staying Out Of The RCEP Is In India’s Best Interests : Tushar Gupta is a senior sub-editor at Swarajya.
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Snapshot :
#The decision to walk out of the RCEP stems from the weak history India has had with free trade agreements under the UPA (United Progressive Alliance) regime before 2014.
#And in retrospect, the biggest issue facing India entering the RCEP was China.
-----------------------------------------------------------------------------------------------------------------------#After elaborate deliberations, the Narendra Modi government chose to step away from the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement amongst countries in the ASEAN (Association of Southeast Asian Nations) bloc, and China, Japan, South Korea, Australia, and New Zealand.
Had India stayed in the RCEP, the agreement would have catered to 3.4 billion people, almost half of the world’s population and would have constituted 40 per cent of the global gross domestic product (GDP).
#India’s call to stay out of the RCEP is a testament to the decisive leadership under the Modi regime.
------------------------------------------------------------------------------------------------------------------------The move will have significant benefits for India’s farmers, the dairy sector, and other local industries, guarding them against the likes of China who would have otherwise used the RCEP to dump their cheap products in the Indian market. The move will also benefit the service sector.
#A Weak History :
#India signed a free trade agreement (FTA) with countries in the ASEAN bloc and South Korea in 2010. Separate FTAs were also signed with Malaysia and Japan in 2011.
#The first UPA regime under Dr Manmohan Singh had also explored the possibility of an FTA with China in 2007, a move that would have devastated the local industries.
#However, these FTAs did little to cater to India’s interests. Between 2004 and 2014, India’s trade deficit with RCEP nations increased eleven times, from $7 billion in 2004 to around $78 billion in 2014. India’s trade deficit with China alone is more than $50 billion.
While one may attribute the deficit to India’s low level of exports, a problem Modi government has been trying to tackle through programs like ‘Make in India’, the truth remains that domestic industries have suffered hugely due to cheap imports and dumping practices of China.
#Even with the ASEAN bloc countries, the FTA has been unjust to Indian interests :
#The story remains the same with South Korea. India signed the Comprehensive Economic Partnership Agreement (CEPA) with South Korea in 2009.
While under CEPA, South Korea’s exports to India almost doubled between 2009 and 2019 from $8.5 billion to $16.7 billion. However, India’s exports have shown weak growth, going from $3.42 billion in 2009 to a mere $4.71 billion in 2018-19.
Put simply, India’s export sector has failed to tap the South Korean market. Steel, where 100 per cent tariff reductions were made available to India under the CEPA, the exports have remained stagnant at $339 million in 2017-18 from $330 million in 2010-11.
#Similar imbalance with other countries of the RCEP has led to severe trade distortion and flooding of the Indian market with cheap Chinese products.
#While it may benefit the consumer due to low prices, it eliminates the possibility, in the long run, of the emergence of the local industries, thus having a depreciating impact on employment, innovation, and capacity building.
#What Made India Stay Away From The RCEP :
One, there was the threat of circumvention of Rules of Origin due to ‘tariff differential’.
Put simply, countries within the RCEP could take advantage of the tariff differential given to another country in tariff lines (classification codes of goods or products) not offered to it. Thus, China could, for instance, use the tariffs offered to Vietnam, to dump its products in the Indian market.
Two, India wanted a change in the base rate of customs duty from 2014 to 2019. Assuming RCEP was signed now, it wouldn’t become operational till 2022.
However, if a change in the base rate was not done, custom duties from 2014 would be applied in 2022, negating the change in the base rate due to current market forces and consumer dynamics.
For instance, local Indian industries that have witnessed strong emergence post-2014 under the ‘Make in India’ programme would have suffered due to the application of customs duties that do not take into account the contemporary market realities.
Yet another point is that while the change in the base rate would have surely helped Indian industries, it would have been beneficial for all members of the RCEP too.
Three, there was the request to enable tariff lines for Auto Trigger Safeguard Mechanism (ATSM) with a review clause at a periodicity of three years.
This would have ensured safeguards against import surges and dumping practices that countries like China engage in. Again, enabling tariff lines for ATSM would have been helpful for all the RCEP members.
Four, India wanted the exclusion of the Most Favoured Nation (MFN) obligation, stated within the investment chapter of the RCEP.
An MFN, though commercial in nature, is usually coupled with diplomatic and strategic interests, and thus, cannot be handed over to countries with which India shares a border or a geopolitical dispute.
Within the RCEP, allowing an MFN status to all members would not have been beneficial for India at all.
Five, there was also the issue of carving out sensitive sectors from the ratchet obligations under the investment clause of the RCEP.
For instance, if India were to give any benefits to France or the United States for a defence programme, the same benefits would have had to be given to all RCEP members, including China.
The same would have applied for other sectors too. Given how the allocation of some of these benefits stem from geopolitical interests, this clause within the RCEP was strongly against India’s interests and capacity building in the long run.
#What’s Next For India?
#One, the import of agarbatti, a significant import, has been moved to the ‘restricted category’ from the ‘free category’.
This will be helpful in securing the local industries. Also, a safeguard duty of 5 per cent has been imposed on palm oil imports to secure local interests and help farmers.
#Two, to help the local cashew planters, MSP of Cashew Kernel Broken has been raised to Rs 680/kg from Rs 288/kg.
For Cashew Kernel Whole, it has been raised to Rs 720/kg from Rs 400/kg. Import of peas and pulses has also been restricted. In FY 2019-20, import of only 4 lakh MT (metric tonne) of Toor and 3 lakh MT of Moong and Urad would be allowed.
#Three, a Steel Imports Monitoring System (SIMS) has been launched to monitor the import of steel. Stakeholders in the steel industry will have all the information pertaining to steel imports, and thus, required policy intervention and planning would be possible.
#Four, to tackle the shortage of maize (feed grade) for poultry and dairy farming, customs duty has been lowered to 15 per cent from the earlier 50 per cent for the import of 5 lakh MT of maize. This will be a booster for the local poultry and dairy industry.
Five, and lastly, several other steps are being taken. For instance, the government has restricted imports of the national flag that violated the flag code. There are other measures also in the pipeline to secure the interests of local farmers and fishermen.
Moreover, options for elaborate FTAs are being explored with the European Union, United Kingdom (keeping Brexit in mind), and the United States.
#In retrospect, the biggest issue facing India entering the RCEP was China :
#Thus, while India has taken the path to secure its local interests, it remains to be seen how China will use the clauses within the RCEP to treat the other 14 member nations across the 2020s.
#Going by precedence, the free trade agreement may come at a hefty cost for these 14 member nations.
=======================================================================JAY HIND
JAY BHARATHAM
VANDHE MATHARAM
BHARAT MATHA KI JAY.
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