RCEP , World’s largest Trade Deal
Key points:
-
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.
India’s concern
-
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.