New Delhi, Nov 13 (UNI) Asia-Pacific trade ministers have not been able to complete negotiations on the Regional Comprehensive Economic Partnership (RCEP) agreement at their meeting in Singapore and the 16-nation trade deal would be concluded and signed next year, reports reaching here said.
RCEP is a proposed free trade agreement between the 10 ASEAN members and the six Asia-Pacific states with which ASEAN has free trade agreements -- Australia, China, India, Japan, South Korea and New Zealand.
The talks began five years ago and now focus on 18 categories of trade. They include rules on intellectual properties and what items should be tariff free.
India is reluctant to lower protective tariffs on its industries. It has balked at agreeing to the deal in its current form as RCEP doesn’t provide for free movement of skilled labour.
"We are very happy that India's concerns have been taken on board, and we feel that we should conclude in a way that will be long-term sustainable so that every country will benefit from it," said Commerce Minister Suresh Prabhu.
An important factor that said to have weighed on the talks is the general elections scheduled in early 2019 in India, Thailand, Indonesia and Australia which do not want to open markets during the time-frame of the deal that will cover nearly half the world's gross domestic product.
Philippines Trade Secretary Ramon Lopez said the RCEP trade deal has "achieved a significant progress" but the trade ministers failed to reach their year-end target of a "substantial conclusion."
Chinese Prime Minister Li Keqiang also said negotiations on the RCEP would be finalised in 2019.
"We are going to announce the completion of the substantial negotiations on RCEP and the entry into the final stage at this meeting, and China hopes to conclude the RCEP negotiations next year," Li said delivering a speech here at the 44th Singapore Lecture on Tuesday.
Australian Trade Minister Simon Birmingham echoed those sentiments. “It will take a little bit longer to ensure that we get the type of substantial, meaningful, commercially meaningful market access decisions that Australia expects in a trade agreement,” said Birmingham.
UNI SRJ