RCEP talks: India submits first round of offers on goods

India has finally submitted its first round of detailed offers to dismantle tariffs on goods as part of the ambitious Regional Comprehensive Economic Partnership (RCEP) being negotiated between 16 countries.

The move comes ahead of the India-ASEAN Summit next week, where discussions on fast-tracking the negotiations are likely to take place.

“A detailed list of the items for which we would be eliminating tariffs has been sent to all the members this week. There was a delay as we had to consult most sectors and ministries including Revenue,” a Commerce Ministry official told BusinessLine .

Once created, the RCEP — which includes India, China, South Korea, Japan, Australia, New Zealand and the 10 ASEAN countries — will be one of the largest free trade bloc (including goods, services and investment) in the world with 45 per cent of the world population and over $21 trillion of gross domestic product.

New Delhi and Indonesia were the only two that had not submitted their offers at the Busan meet in October. Consequently, they were also not allowed to look at the offers made by others.

“We can now access the offers made by other countries and make requests for improvements wherever we find them lagging,” the official said.

It was important for India to submit its first round of offers this week as it would have been embarrassing for Prime Minister Narendra Modi at the India-ASEAN Summit next week, where some countries might have blamed New Delhi for the delay in negotiations.

“Although Malaysia had declared long back that the RCEP negotiations may not conclude by this yearend, we did not want to be blamed for it at the last minute,” the official said.

The broad contours of the first round of offers were concurred upon in September, when India and China agreed to eliminate tariffs on 42.5 per cent of items traded between the two. India proposed the same for Australia and New Zealand, who were ready to reduce tariffs on 62.5 per cent and 80 per cent of items from India, respectively.

New Delhi agreed to eliminate tariffs on 80 per cent items for the ASEAN compared to 74 per cent agreed to under the India-ASEAN free trade agreement. ASEAN countries were ready to reciprocate.

For Japan and South Korea, India offered to reduce tariffs on 65 per cent of items, which is less ambitious than its existing bilateral FTAs with the countries. The two agreed to remove tariffs on 80 per cent of items from India.

The next round of negotiations is likely in February, when the existing offers and the scope to improve them will be discussed.