* India still has significant outstanding issues
* Other 15 countries to prepare for signing in 2020
(Adds quote from participating countries, Modi, Chinese
official, trade analyst)
By Panu Wongcha-um, Patpicha Tanakasempipat and Liz Lee
BANGKOK, Nov 4 (Reuters) - China joined 14 countries on
Monday in agreeing terms for what could be the world's biggest
trade pact, but India pulled out at the last minute on the
grounds that the deal would hurt its farmers, businesses,
workers and consumers.
The Sino-U.S. trade war and rising protectionism have given
new impetus to years of negotiations on the Regional
Comprehensive Economic Partnership (RCEP), which brings together
the 10-member Association of Southeast Asian Nations (ASEAN),
China, Japan, South Korea, Australia and New Zealand.
Members said the deal would be signed next year after the 15
countries without India reached agreement in Bangkok on the text
and market access issues.
"Against the backdrop of a fast-changing global environment,
the completion of the RCEP negotiations will demonstrate our
collective commitment to an open trade and investment
environment across the region," the countries said in a
statement.
They opened the door to India potentially joining them
later, if the issues it has with the deal are resolved.
But Indian Prime Minister Narendra Modi said that he had to
take into account the interests of Indian people.
"When I measure the RCEP Agreement with respect to the
interests of all Indians, I do not get a positive answer," Modi
said in a speech in Bangkok, according to a government note.
"Neither the Talisman of Gandhiji nor my own conscience
permit me to join RCEP," he said, in a reference to "father of
the nation" Mahatma Gandhi's maxim to always think of the
poorest in society in a situation of doubt.
INDIA-CHINA RIVALRY
India has been worried that the agreement, which requires
the gradual elimination of tariffs, would open its markets to a
flood of cheap Chinese goods and agricultural produce from
Australia and New Zealand that would harm local producers.
Longstanding rivals China and India, who fought a border war
in 1962, also clashed verbally in recent days over India's
decision to formally revoke the constitutional autonomy of the
disputed Muslim majority state of Kashmir. Even without India, the countries in the RCEP bloc account
for nearly a third of global gross domestic product, but its
departure means they have less than a third of the world's
population instead of around half.
"While I'm pleased that the 15 were able to conclude, it is
a pity India proved unable to rise to the occasion. It was a
massive missed opportunity," said Deborah Elms of the Asian
Trade Centre in Singapore.
"In the meantime, this is excellent news for trade and
Asia," she said, noting that there was still time for India to
sign.
Chinese Vice Foreign Minister Le Yucheng said: "Whenever
India is ready they are welcome to come on board."
An advantage for the other countries of having relative
heavyweight India in the trade pact would have been less
domination by China, particularly at a time they see the United
States as a less reliable trade and security partner.
U.S. President Donald Trump's administration sent a lower
level delegation this year than it has previously to the
back-to-back East Asian Summit and U.S.-ASEAN Summit.
Because of the downgrade in the U.S. delegation, officials
from only three of the 10 regional countries joined the usual
U.S.-ASEAN meeting.
U.S. Commerce Secretary Wilbur Ross told a business meeting
on the sidelines of the summit that the Trump administration was
"extremely engaged and fully committed" to the region.
White House national security adviser Robert O'Brien brought
an invitation to a summit from Trump himself and pleased some
Southeast Asian leaders by criticising Chinese actions in the
disputed South China Sea. But diplomats and analysts said the message from Washington
was clear.
"Doubts have been raised in a more serious way about the
Trump administration engaging and this may also play into the
hands of other superpowers in pushing their own agendas," said
Panitan Wattanayagorn, a former Thai national security adviser.