RCEP trade ministers reaffirm resolve to achieve pact to promote inclusive economic integration

Trade ministers of 16 Regional Comprehensive Economic Partnership (RCEP) countries, including India and China, have committed to conclude an agreement that would help promote regional economic integration.

The mega trade pact aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights.

The ministers recognised the importance of successful conclusion of the pact in view of the current global trade environment which faces serious risks from unilateral trade actions and reactions, a joint statement said.

It was issued after the fifth RCEP inter-sessional ministerial meeting held on July 1 in Tokyo.

Anup Wadhawan, Officer on Special Duty (OSD) and designate Commerce Secretary represented Commerce Minister Suresh Prabhu in the meeting.

"...the Ministers reaffirmed their resolve to work together and see through the RCEP negotiations towards conclusion, and to achieve an agreement that would allow economies of different levels of development to actively participate in and benefit from an open and inclusive regional economic integration," it said.

The members also agreed to work with a greater focus on finding breakthroughs for conclusion of the negotiations.

"To this end, the ministers tasked negotiators to focus efforts towards achieving a package of year-end outcomes," it added.

They also instructed negotiators to improve market access offers.

The meeting assumes significance as pressure was mounting on India for early conclusion of the proposed pact.

RCEP bloc comprises 10 Asean members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners -- India, China, Japan, South Korea, Australia and New Zealand.

The talks have dragged on as the member countries want an agreement over removal of customs duties on maximum number of products traded between them. However, countries like India have certain reservations on this as the grouping includes China, with which New Delhi has a huge trade deficit.

Indian industry and exporters are apprehensive about the presence of China in the grouping. They have stated that lowering or eliminating duties for China may flood Indian markets with Chinese goods.

Besides, countries like India want greater liberalisation in the services sector trade, which is a key component in the domestic economy.