New Delhi: After India decided to opt out of the Regional Comprehensive Economic Partnership, a mega trade deal dialogue between 16 nations including India, former ambassador Anil Trigunayat has welcomed government of India's decision and said that until country's concerns are addressed there is no point of acceeding into the pact.
Speaking exclusively to ETV Bharat, ambassador Trigunayat said "Personally, when we sign these free trade agreements with other countries, it means we get greater access to the markets. Now, we want the movement of services. Larger concerns of India should be addressed. And, if they aren't going to be addressed then there is no benefit of acceding into it."
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Pointing towards India's $105 billion trade deficit with RCEP countries in 2019, with China holding the major share of more than $50 bn, Trigunayat claimed that this issue does not indicate complementarity of the trade in an even and balanced manner.
It is important to note that the trade deficit with RCEP countries has increased to $7bn from $78 bn from 2004 to 2014. Hinting towards this, the former envoy stressed on the concept of Free Trade Agreements which are undertaken for the advantage of our own industries without damaging the domestic challengers.
India's trade deficit with ASEAN has increased to $80.08 bn in 2018 from just over $73 bn in 2019. According to the last public report from ASSOCHAM in 2016, India has a trade deficit of $14.6 bn with ASEAN. The largest trade deficit among ASEAN is with Indonesia which stands at $10 bn. The trade deficit would have been much higher but India has a trade surplus with Vietnam.
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