India has raised objections to the proposed Regional Comprehensive Economic Partnership (RCEP) pact. Sections of Indian industry, farmers and the dairy sector have expressed concerns over the mega trade deal. Many of the demands raised by India are in the area of enhanced coverage of items under the auto trigger mechanism and the relatively tougher rules of origin. While the auto trigger mechanism will lead to an increase in import duties as soon as inflows of a particular product rise beyond a certain threshold, the tough rules of origin aim to ensure that there is substantial value addition to a product before it is exported to another country where it is eligible for preferential duties. The apprehension being felt by many industrial sectors and farmers on a possible flooding of the market with cheap imports once import duties on goods from China are pared is one of the reasons behind India’s hard posture at the negotiations.

The RCEP deal is being negotiated by 16 countries, including the 10-member Asean, China, India, South Korea, Japan, Australia and New Zealand. It is one of the largest free trade deals being negotiated globally, accounting for about half the world’s population and a third of its GDP.