China requests dialogues with India to alleviate concerns on a regional free trade pact that it is promoting amid the on-going trade war with the United States. Two people familiar with the matter said that 16-country Regional Comprehensive Economic Agreement (RCEP) has been in the works for a while and China is keen to conclude it by the end of 2019.
The RCEP is a mega free trade agreement that covers goods, services, investments, economic and technical cooperation, competition, and intellectual property rights.
India is recently wary that Chinese products might flood its market. India's looser immigration rules for tech professionals are a factor to be considered in submitting to the trade pact. India's concern shows that the Asian trading partners of China are suspicious that the agreement is being used to increase its influence in the region. The RCEP and the Belt and Road Initiative are important factors that will ensure China's geopolitical advantage. It is considered a treat to the influence of the United States in the region.
India's foreign ministry failed to respond to a message seeking comments and China's commerce and foreign ministries are unable to give their comment regarding the talks.
According to reports, the talk is scheduled to take place before the end of January. India has already listed the issues to be discussed during the meeting with China. The list includes zero-duty access to fewer Chinese goods contrary to the current offers to the members of the RCEP. India is also planning to discuss a longer period to phase out levies on Chinese goods compared to 20 years offered to the other members. India's import of Chinese goods has increased reaching a deficit of $55.6 billion in 2017 from $48.19 billion in 2015.
An Indian official announced last December that they are scheduled to meet with officials of a few countries including China and some ASEAN members to clear issues that hinder negotiations of the RCEP trade deal.
The official said that the RCEP members are scheduled to meet for the 25th round of negotiations in mid-February in Indonesia after the bilateral meetings with representatives of the countries. The RCEP members included 10 ASEAN nations including Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos, and Vietnam and six FTA members that include India, China, Japan, South Korea, Australia, and New Zealand.
According to trade experts, India needs to be careful with the negotiations since it has trade deficit other members of the RCEP.
