Commerce and Industry Minister Piyush Goyal has indicated that India is open for negotiations if RCEP member countries come up with a better offer that can address concerns and provide greater market access for domestic industries.

However, he said that for the present it is the final decision of the government that India will not join the China-backed mega free trade agreement - Regional Comprehensive Economic Partnership (RCEP).

Prime Minister Narendra Modi said in Bangkok on November 4 that India will not join the RCEP deal as negotiations failed to address New Delhi’s “outstanding issues and concerns”.

As many as 16 countries - the 10-nation bloc ASEAN and its six trading partners including India - were negotiating the mega free-trade pact RCEP.

“For the present, it is the final decision; we are not joining RCEP. But if all our demands are met, which will give Indian industry more scope for growth, will open better markets without adversely affecting India’s interest. I think, every government is always open for discussion and negotiations,” Goyal said.

“In international engagement and relations, the doors never shut with anybody. If they make a sincere effort to resolve our concerns, to give us confidence and help us to balance this trade inequality, then I think every nation should talk to their friends,” he added.

India adopted a tough stand at the RCEP on issues such as balancing huge trade deficit with countries like China; a mechanism to check sudden surge in imports or dumping goods; strong norms for rules of origin, base year for reduction of duties should be 2019 instead of 2014, and unfair trade practices.

The minister said that the lesson to be learnt from these negotiations is that one should never finalise a trade agreement in a hurry and with a timeline, like it was done in 2010-11 with Japan, South Korea and ASEAN.

“Trade discussions should allow enough time and considerations, so that they are done carefully keeping the best interest of people and country,” he added.

When asked whether India is a deal breaker at the last minute, he said that the country was raising these issues since 2014 and consistent on its stand to protect its national interest.

He added that during the UPA regime from 2004 to 2014, trade deficit with this grouping jumped significantly.

Reading out official notings, the minister said that the UPA regime in 2007 had proposed a trade agreement with China with which India has a huge trade deficit.

The trade deficit with the RCEP bloc soared from $7 billion in 2004 to $78 billion in 2014.

Trade deficit has done significant harm to the Indian economy, and by taking the decision to not join the RCEP reflects India’s strong negotiating abilities, he said.

“We did not withdrew from RCEP in an acrimonious manner. If we had suddenly got out in 2014, that could be kind of acrimonious exit which would lead to a kind of uncertainty in trade and economic relations. We put forth our issues strongly. So, India gone out with its head held high,” the minister said.

On reviewing existing free trade agreements, he regretted that the Congress-led government had signed these pacts with Japan, South Korea and ASEAn in a rush.

In these pacts, he said, India did not get market access for those products where it has competitive advantage. After the PM raised these issues, “ASEAN is now ready for review. With Korea also we have started and Japan too has agreed for review”, he added.

On the status of FTA talks with the European Union, the minister said several European countries have asked India to consider resuming the talks, stalled since May 2013.

“We must engage in this FTA. We can export a number of products to the EU. There were no discussions currently,” he said.

A joint statement issued after the RCEP summit stated that India has significant outstanding issues, which remain unresolved. All RCEP members will work together to resolve these issues in a mutually satisfactory way. India’s final decision will depend on satisfactory resolution of these issues.

China said that it will follow the principle of “mutual understanding and accommodation” to resolve the outstanding issues raised by India for not joining the RCEP.

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