Goyal Criticizes Past Government's Forced RCEP Involvement

Union Minister Piyush Goyal criticized India's previous RCEP negotiations, attributing the decision to join to executive actions by the former Congress government. He expressed concerns about potential increased trade deficits, particularly with China, had the deal finalized. Current deficits are reportedly growing at a slower pace.

Union Minister of Commerce and Industry, Piyush Goyal, sharply criticized India's previous involvement in the Regional Comprehensive Economic Partnership (RCEP) negotiations. During a press event concluded Thursday on his four-day US visit, Goyal claimed the then Congress government 'forced' India into joining the trade grouping.

Goyal explained that the RCEP consists of 15 nations, and at the time, India already shared Free Trade Agreements (FTAs) with 12 of them, including the ten countries of ASEAN. Highlighting that the negotiations were in advanced stages, he stressed India aborted the talks fearing it would lead to an FTA with China, leading to increased trade deficits and economic harm.

The minister contrasted the growth in India's trade deficit with China between prior years to now, noting a significant slowdown since 2014. Criticizing the previous government for not recognizing the impact on India's economy, Goyal commended current efforts to manage trade deficits and emphasized upcoming trade discussions with ASEAN in Jakarta.

(With inputs from agencies.)