Civil society organisations and labour group representatives have demanded that the Centre should save the manufacturing, agriculture and services sectors from the expected adverse impacts of the Regional Comprehensive Economic Partnership (RCEP), which would include job losses, as the 15 partner countries, including China, are 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 (free trade agreements) 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 JNU professor Biswajit Dhar 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 10-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 70-80 per cent with additional protection against Chinese goods.

The Fifth Ministerial meeting of the RCEP in Manila on Sunday reportedly failed to make progress 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. 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.

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 the employment impact of RCEP in domestic banking services, as financial services are being specifically negotiated,” said Ravinder Gupta of the All India Bank Officers Confederation.

The RCEP also promises greater integration to a global production network which will be disastrous for India’s low-skilled workforce, pointed out Satyaki Roy from the Institute for Studies in Industrial Development.

“India’s net gain ratio figures from participation in global production network suggest a net loss through increased participation. The low skilled workers of developing countries are the worst losers in the multinational companies led global architecture of production which RCEP typifies,” he said.