RCEP will be third big jolt to economy by PM Modi, says Congress' Jairam Ramesh

The Congress on Friday opposed India signing the Regional Comprehensive Economic Partnership (RCEP) agreement, saying it will be the "third big jolt" to the Indian economy after demonetization and GST and will result in liberalising Chinese imports to Indian market.

Addressing a press conference here, Congress leader Jairam Ramesh said that there was possibility of India signing the RCEP agreement.

"After demonetisation and GST, it will be the third big jolt to our economy when the Prime Minister goes to Bangkok the next month and expresses India's agreement to Regional Comprehensive Economic Partnership," he said.

He said the government was not talking about' Made in India' now and the agreement will encourage 'Made in China'.

Ramesh said that balance of trade was heavily in favour of China.

"RCEP will result in liberalisation of imports from China. We do not know what was discussed in Wuhan or Mahabalipuram but we can see the results, there will be liberalisation in imports from China. 'Made in India' is not mentioned now. It'll encourage 'Made in China'," he said.

He said that managing director of Amul has written a letter to Union Commerce Minister Piyush Goyal in which he has expressed concern and said that Indian dairy cooperative will be ruined if India proceeds with RCEP.

"Managing Director of Amul has written to Minister Piyush Goyal stating that India should not do RCEP, else dairy cooperative would be ruined. The milk will be imported from New Zealand, sugar from Australia, dairy products would be imported and it will also ruin our agriculture," he said.

"India will accept the free flow of data under RCEP. The national interest particularly the national security has been removed from the draft RCEP," he added.

Ramesh alleged that the government was keen to sign the agreement due to "mismanagement of economy".

"There is a text to RCEP, there is context to RCEP. The text to RCEP is bad, the concept is worst," he added.

RCEP is a proposed free trade agreement among 10 ASEAN countries and their six FTA partners China, Japan, India, South Korea, Australia and New Zealand.