The RCEP Agreement, formed to create the world’s largest free-trade zone, will be signed by 15 countries as India upholds its disagreements. PM Modi showed concerns regarding the potential negative impacts of the policy on the domestic industry. The discussion stage is still open for India as the RCEP goes ahead to 2020 for signatures.
Crux of the Matter
10 ASEAN countries along with China, Japan, India, Australia, New Zealand, and South Korea, are the 16 nation partners of the Regional Comprehensive Economic Partnership (RCEP) Agreement launched in 2012.
The RCEP lacks the terms that support the growth of Indian farmers, professionals, businesses, and industries as per the Indian government.
Commitment to Rules of Origin, the threat of import surge, ambiguity on the access of different market and non-tariff barriers, and use of the year 2014 as the base year, were some of the shortcomings in the RCEP.
Considering India as one of the key benefactors of the trade deal, China and Australia stated that “The door still open for India”.
The opposition led by Congress had slammed the Indian Government last week stating that the acceptance of the RCEP would paralyze the economy, resulting in loss of millions of jobs. The RCEP negotiations had begun in the Congress regime in the first place.
At the end of the day the Indian government looked out for the country’s sovereign interests in rejecting the RCEP deal.
Curiopedia
RCEP or Regional Comprehensive Economic Partnership Agreement is the largest free-trade zone pact in the world, and covering a mammoth 35% of the world’s GDP and one-third population – works on the fundamentals of integrating the partner markets by relaxing trade barriers and improving access to products and services of partner nations. Read More
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