India rejects RCEP e-commerce Chapter

Why is it in the news?
  • Indian negotiators declined to agree to the e­-commerce chapter of the Regional Comprehen­sive Economic Partnership(RCEP) agreement.
  • The nego­tiations on the chapter, tak­ing place in Bangkok
More in the news
  • The e­-commerce chapter contains clauses that, if India had agreed to them, India would not be able to im­plement data localization rules on companies doing business in India.
  • The section on transfers of information and processing of information says that “a party shall not take mea­sures that prevent transfers of information, including transfers of data by electron­ic or other means, necessary for the conduct of the ordinary business of the financial service supplier.
  • However, the same sec­tion also says that “nothing prevents a reg­ulator of a party for regulatory or prudential rea­sons from requiring a financial service supplier to comply with domestic regu­lation in relation to data management and storage  and system maintenance, as well as to retain within its territory copies of records.
RCEP and Auto sector
  • The auto industry body SIAM cautioned that RCEP should not lead to job losses, and hurt the government's Make in India initiative.
  • SIAM has been maintaining that free trade agreements (FTAs) with competing countries do not benefit Indian automobile industry.
  • It has demanded that 28 items, including hybrid, electric cars and three-wheelers, be kept out of the purview of all such pacts.
Source
The Hindu.
Posted by Jawwad Kazi on 12th Oct 2019
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