Japan is likely to push for a separate working group for proposed opening up of the e-commerce sector as part of the on-going regional comprehensive economic partnership (RCEP) negotiations when the next round of talks takes place in Kyoto in June.
India, which is one of the 16 countries that are part of the RCEP, will stay firm on its domestic position of not permitting foreign direct investment in the business-to-consumer segment of e-commerce, but may not oppose the formation of the group, a government official told BusinessLine .
Although Japan has not approached India directly as yet asking New Delhi to change its existing policy that doesn’t allow foreign investment in e-retail, once a group is formed pressure is likely to intensify. India, at present, allows 100 per cent FDI in business-to-business e-commerce, but bars it in the business-to-consumer segment. “Japan’s insistence on a separate working group on e-commerce indicates that it is going to try its best to make it part of the free trade deal. We see no point in opposing the formation of a group, but we are certainly not going to be pushed into taking on commitments that go against our national interest,” the official said.
Japan has already floated a paper proposing relaxation in FDI norms in the e-commerce sector by all members. In the inter-sessional meetings that followed the last RCEP round in Indonesia in March, it has pursued the issue with great enthusiasm, the official added.
The next round of the RCEP negotiations will begin in Kyoto on June 7.
The RCEP negotiations include the 10-member Asean and its Free Trade Agreement partners — India, Japan, South Korea, China, New Zealand and Australia. RCEP members are hopeful of concluding the deal, which would include commitments on opening up markets in goods and services and easing investment flows and also touch upon areas such as competition and intellectual property, by the year-end.