RCEP , World’s largest Trade Deal
RCEP: Regional Comprehensive Economic Partnership
RCEP: A free trade agreement of 15 countries.
The trade agreement is of one third of world’s total GDP
The negotiation of RCEP has started in 2013
India declared in November 2019 that it would not participate in RCEP
Member Countries of RCEP includes Australia, China, Japan, New Zealand South Korea, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
RCEP may open up Indian market for countries like China that would increase the trade deficit with China.
Indian goods may not take the markets of other member countries whereas goods from other countries may take up Indian market. As a result Indian brand may incur loss.
As the negotiation begun in 2013, the base year proposed to be 2013. India wanted 2019 to be the base year.
India wanted auto trigger mechanism to be in place.
13 RCRP nations opposed strict country of origin norms.
India wanted exemption on “ratchet” obligations.