Tony Abott: 'India entitled to act in accordance with its values, interest'

Former Australian Prime Minister Tony Abbott on Monday said that "India is entitled to act in accordance with its values and interests" over its decision to opt-out of the Regional Comprehensive Economic Partnership (RCEP) agreement. He further added that he is not critical of India's move and that he supports free trade. The former Australian Prime Minister added that he "hopes that Prime Minister Narendra Modi and his Australian counterpart Scott Morrison will kick start Australia-India free trade agreement in February next year."

India opts out of RCEP agreement

In a major decision reflecting India's 'Nation First' policy, India on November 4 refused to join the Regional Comprehensive Economic Partnership (RCEP). The Centre released an informal press note sharing details on how the move will affect India's farmers, MSMEs, and dairy sector. India believes its decision displays its openness to global competition while boosting India’s service sector. The signing of the RCEP has been deferred to next year.

Read: 'PM stayed out of RCEP keeping in mind economic interests': Rajnath Singh

The Centre stated that the threat of circumvention of Rules of Origin due to Tariff Differential, unavailability of MFN obligations and no assurance on market access and non-tariff barriers had not been addressed in the agreement. PM Modi, in his address, has stated, "The present form of the RCEP Agreement does not fully reflect the basic spirt and the agreed guiding principles of RCEP. It also does not address satisfactorily India's outstanding issues and concerns In such a situation, it is not possible for India to join the RCEP Agreement."

Read: India refuses to compromise interests; RCEP signing deferred to 2020

About RCEP

The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) and its six FTA partners, launched in 2012. The member nations include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, and the FTA members include China, Japan, India, South Korea, Australia and New Zealand. The agreement aims at dropping tariffs and duties between the members to allow a free flow of goods and services.

Read: Piyush Goyal counters Sonia: India joined RCEP negotiations in UPA era

Read: YSRCP: RCEP back out a breather for agri and industrial sectors

(WITH ANI INPUTS)