Context:
India should be part of RCEP: NITI CEO
RCEP:
- 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 & RCEP:
- 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)