NEW DELHI: The government may have opted out of the
Regional Comprehensive Economic Partnership
(
RCEP
) agreement but is expected to pursue separate trade agreements with some of the countries that will be part of the bloc, such as
Australia
and New Zealand, as well as those with which negotiations have not made substantial progress in recent years, such as the
European Union.
Read also: India opts out of RCEP, PM Modi says concerns not addressed First off the block may be an agreement with Mauritius, India’s close ally, signalling New Delhi’s intent to move ahead with trade pacts and also get a toehold into the African market, where China has gained considerable muscle. While the plan was to kick off work on the long-pending trade and investment pact with EU towards the end of the year, it may have to be postponed till there is greater clarity on
Brexit, for which an extension has been provided.
Read also: China may look like winner, but India had its reasons to walk out of RCEP
The idea is to seek easier market access through lower import duties on products such as textiles and garments, and market access for Indian bananas and some other products. Brexit is also expected to pave the way for a trade pact with the UK. In the run-up to the RCEP talks, government officials had indicated that India could quickly move ahead with a Comprehensive Economic Cooperation Agreement with Australia where a joint study group was set up in 2010.
Read also: Why India decided not to join RCEP agreement But RCEP had put the bilateral trade deal on hold, which is expected to get a fillip now, especially if Australia is willing to allow easier visa access to Indian professionals. By walking out of RCEP, India has signalled to its trade allies that it is unwilling to do business on their terms but remains open for business. The idea is to be selective, especially with countries with which India has a massive trade deficit, such as China.
Read also: BJP hails 'strong' PM, slams UPA for signing weak FTAs