Context:
Four years after India walked out of the Regional Comprehensive Economic Partnership (RCEP) agreement, Sri Lanka and Bangladesh are now considering their chances of membership.
About 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 – 15 member countries such as Australia, China, Japan, New Zealand and Republic of Korea + ASEAN Members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam)
- Objectives of RCEP –
- 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.
Why did India walk out?
- Its 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
Click here to read about ASEAN
Click here to read about Free Trade Agreements
About Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP):
- It was signed in March 2018 and came into force in December 2018.
- It succeeded the Trans-Pacific Partnership (TPP) after the United States withdrew from the TPP in 2017.
- It is a Free Trade Agreement (FTA) between 11 nations.
- Member countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Singapore, Countries Vietnam, Peru, Mexico, and New Zealand.
Source: The Hindu
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)
