5 Solutions for India's RCEP Apprehensions

1. Protect & Promote domestic industry: Given the costs and benefits in RCEP, it is important for India to strike a balance between domestic and external interests to minimise the adverse effects of RCEP on its domestic engineering industry. If domestic industry has to thrive, it needs protection as also the enabling conditions created by factor and product market reforms.
2. Use of skilled labour: India has been insisting on capitalising on its pool of 'skilled' labour force to gain from improved access to employment opportunities in these economies. This has been expected to come about by increasing the ease of movement of professionals through the liberalisation of what is called Mode 4 in services trade.
3. Protect tariff structure: India should continue to maintain its position of proposed dual tariff structure in the RCEP as it will help India to protect its tariff lines which are more vulnerable to cheap Chinese imports. It must emphasise on a special and differential treatment based on stages of economic development.
4. Restrict Rules of Origin (RoO): It can be used as a strong instrument in RCEP to curb the free flow of Chinese goods into the domestic market. India should restrict RoO to high value-addition to prevent the imports of cheap Chinese goods, which may come to India through our existing FTA partners. Strict RoO in RCEP will provide a safety wall to domestic producers against cheap Chinese goods.
5. Placing suitable safeguards: Within the FTA, provision should be made for safeguard measures like antidumping etc which should be invoked if a volume or price trigger for the concerned products is reached.