Regional Comprehensive Economic Partnership (RCEP)

Regional Comprehensive Economic Partnership (RCEP)

India should be part of RCEP: NITI CEO

  • A free trade agreement (FTA) between the 10 member states of the Association of Southeast Asian Nations (ASEAN) and its 5 FTA partners.
  • World’s largest trading bloc designed to promote economic integration, trade liberalization, and cooperation among member nations.
  • Present Members – 5 FTA partners such as Australia, China, Japan, New Zealand and Republic of Korea & 10 ASEAN Members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam)
  • Objectives
    • Facilitate trade and investment among member nations.
    • Reduce or eliminate tariffs and non-tariff barriers to trade.
    • Enhance economic cooperation and regional supply chains.
  • Significance
    • Represents 30% of the world’s population
    • Represents over 30% of the global Gross Domestic Product (GDP)
    • Strengthens the influence of the Asia-Pacific region in international trade.
  • India was one of the original members that helped establish the RCEP
  • But in 2019, it made the decision to exit from the RCEP negotiations.
  • Reasons for India’s exit –
    • Concerns related to cheap Chinese imports.
    • Concerns about the impact on its domestic economy.
    • Issues related to mobility in services and reservations from the agriculture sector

Read about India – ASEAN: Free Trade Agreement

Source: Times of India


Previous Year Question

The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as:

[UPSC Civil Services Exam – 2016 Prelims]

(a) G20
(b) ASEAN
(c) SCO
(d) SAARC

Answer: (b)


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