(MENAFN- KNN India) New Delhi, Sep 24 (KNN)
Commerce Minister Piyush Goyal recently elaborated on the country's rationale for withdrawing from the Regional Comprehensive Economic Partnership (RCEP), the world's largest trade pact signed by 15 Asia-Pacific nations in November 2020.

Minister Goyal, who assumed office in June 2019, faced the RCEP decision as his first major challenge and talked about it in a recent exclusive interview with CNBC.

"We were at the fag end of negotiations with the RCEP. November 4 was the day we were told to accept joining the RCEP. I got only about three or four months to get a hang of what was happening," he explained.

Despite the limited timeframe, Goyal determined that RCEP participation would not serve India's best interests, particularly concerning its agricultural sector and micro, small, and medium enterprises (MSMEs).

A primary concern for India was the potential impact on its trade dynamics with China. "RCEP did not reflect the aspirations of our MSME sector, and in some form, was nothing but a free trade agreement (FTA) with China," Goyal asserted.

The Commerce Minister noted that India already has existing free trade agreements with several RCEP participants, including the ASEAN bloc, Japan, and South Korea.

He argued that joining RCEP would primarily benefit China, citing concerns about the country's economic practices and lack of transparency.

Goyal also mentioned that India's trade with New Zealand, another RCEP signatory, was minimal, further diminishing the agreement's appeal for India.

The decision to withdraw from RCEP marks a significant shift in India's trade policy, as the country seeks to protect its domestic industries while navigating complex regional economic relationships.

(KNN Bureau)

MENAFN24092024000155011030ID1108710397