Civil society organisations and labour group representatives have demanded that the Centre should save the manufacturing, agriculture and the services sector from the expected adverse impacts of the Regional Comprehensive Economic Partnership (RCEP), which would include job loss, as the fifteen partner countries, including China, were sticking to their demands of extensive liberalisation.

“The RCEP must not be allowed to cause hollowing out of India’s manufacturing and agriculture. Analysis of previous FTAs with ASEAN, Japan and South Korea has shown that it is the trading partners that have benefited more with India’s trade deficit increasing. The presence of China in the group makes things worse for Indian manufacturers and services sector,” said Biswajit Dhar, Professor, JNU, at a press conference organised by the Forum Against FTAs, a network of India's civil society organisations, trade unions and Peoples' Movements.

While most members of the RCEP, which includes the ten-member ASEAN, Japan, South Korea, Australia, New Zealand, China and India, are pushing for tariff elimination on about 92 per cent items, India is unwilling to move beyond 70 per cent-80 per cent with additional protection against Chinese goods. The Fifth Ministerial meeting of the RCEP in Manila on Sunday reportedly failed to move the negotiations forward as divergences remained between members on tariff cuts in goods and ambitions in services.

“At the negotiating round in Hyderabad earlier this year, there were loud protests against the pact from various sectors including the industry, farmers, health and various services groups. The government must name at least one sector which hopes to gain from the pact before agreeing to it,” said Ranja Sengupta from the Third World Network.

The RCEP countries, accounting for 45 per cent of the world population and over $ 21 trillion of gross domestic product, are hoping to create one of the largest free trading blocs but many interest groups are apprehensive that India may end up losing much more than it gains.

In the services sector, while the ASEAN countries are not willing to offer much in the area of allowing freer movement of professionals, many members are pushing for removing important investment regulations related to banking, insurance, telecom, transportation and health. “We are extremely worried about employment impact of RCEP in domestic banking services as financial services are being specifically negotiated,” said Ravinder Gupta, All India Bank Officers Confederation.