Siddaramaiah demands all-party meeting to discuss RCEP agreement

Senior Karnataka Congress leader and former Chief Minister Siddaramaiah on Friday demanded that Karnataka CM BS Yediyurappa should convene an all-party meeting to discuss the implications of the Regional Comprehensive Economic Partnership (RCEP) agreement. He opined that this free-trade agreement would have a negative impact on agriculture, animal husbandry, and the pharma sector. Alleging that the whole process under RCEP was not transparent, he declared that Congress would protest if the government signed the agreement on November 4.  

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What is the RCEP agreement? 

India is on the verge of signing a comprehensive free-trade agreement in the form of RCEP that involves 10 ASEAN countries: Indonesia, Thailand, Singapore, Malaysia, the Philippines, Vietnam, Myanmar, Brunei, Cambodia, Laos, and the six countries these countries have free-trade agreements with - Australia, China, India, Japan, New Zealand, and Korea. This bloc comprises 25% of the world’s Gross Domestic Product, 30% of global trade and 26% of Foreign Direct Investment (FDI) flows. Basically, it aims to reduce the tariffs and quotas on the import and export of products. Since 2013, this agreement is being negotiated, and India has been trying to resolve problems with other countries regarding tariffs. However, the agreement is finally near completion. 

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Opposition to the agreement

A number of Indian industries are adamantly against the agreement and the changes which it will inflict upon the country’s markets. Addressing a press conference in the national capital on Friday, Congress leader opined that the balance of trade was heavily in favour of China. He claimed that India becoming a signatory to the RCEP agreement would be the third biggest jolt to the economy after demonetisation and GST.  

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