IASbaba's Flagship Course: Integrated Learning Programme (ILP) - 2024 Read Details
TOPIC: General Studies 2:
- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
In News: A few days ago India decided against joining the Regional Comprehensive Economic Partnership - RCEP which is a free trade agreement between more than dozen counties. In the run up to the RCEP meet, the domestic Dairy Industry has been vocal about its apprehensions regarding this FTA.
Why is the Industry apprehensive?
India has been the leading producer and consumer of dairy products with a sustained growth over the years. Estimated production of milk in 2018-19 was 187 million tonnes. Milk is equally important to both farmers and consumers.
Cheaper dairy products from New Zealand would
India’s average bound tariff for dairy products is about 63.8% while its average applied tariff is 34.8%. Joining RCEP would have bound India to reduce that level to zero within the next 15 years.
RCEP could perhaps end up doing to dairy what the free trade agreement with the Association of Southeast Asian Nations (ASEAN) did in palm oil, fear many in the industry in India.
Way forward:
Note:
Regional Comprehensive Economic Partnership (RCEP):
Milk in India:
Connecting the dots: