India is under pressure to agree to eliminate import duty on at least 90 per cent of its traded goods as part of the Regional Comprehensive Economic Partnership (RCEP) pact being negotiated by 16 countries, including China and ASEAN members.
Trade ministers from all member-countries, which include South Korea, Japan, Australia and New Zealand, will meet in Hanoi this week to push the negotiations forward. “New Delhi is firm about not opening its market extensively to at least China and offer the country much lower concessions by working out country-specific deviations.
Philippines suggestionBut what has made the negotiations tougher is the ‘opt out and reciprocity’ flexibility suggestion made by the Philippines,” a government official told BusinessLine.
The ‘opt out and reciprocity’ principle proposes that if a country cannot agree to what the majority of members were ready for, it can opt out from that provision and wait for a time till it is ready to sign up.
In the previous negotiating round earlier this month, the Philippines reportedly told the Trade Negotiations Committee that 14 to 15 countries had agreed to slash 90 per cent of applied tariffs to zero once the RCEP comes into force, but if some countries were not ready, they could opt out and join later.
via RCEP talks: Heat on India to scrap import duty on 90% of goods | Business Line
aniltikotekar4sme.com 