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RCEP and concessions to India
Why is it in the news?
- According to an official source at Singapore, several Asian member countries of the proposed RCEP have offered India a significant concession in a bid to encourage it to join the partnership quickly.
- Regional Comprehensive Economic Partnership (RCEP) is a proposed trade agreement.
More in the news
- The ASEAN countries are keen to have India as part of the partnership and have made India a concessional offer.
- It has offered opening up only about 83% of its market, as compared to the original 92% that the RCEP agreement stipulated.
- It means India would now be able offer tariffs liberalization on upto 83% of goods instead 92% that RCEP agreement earlier stipulated.
- The presence of China, with which India had a $63 billion trade deficit in 2017-18, is the biggest worry for India.
- Granting greater market access to China under RCEP would mean more trouble for India’s labour-intensive domestic industry.
- But now RCEP allows for bilateral agreements also to be made so India can perhaps open up to China gradually and not in one go.
- Several RCEP members however, still averse to allow Indian skilled professionals greater access to their markets. Which was another concern of India.
About RCEP
- RCEP is a proposed free trade agreement (FTA) or comprehensive regional economic integration agreement between the 16 Asia-pacific countries.
- It includes 10-ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) and its six FTA partners (Australia, New Zealand,India, China, Japan and Korea).
- The grouping would comprise 25% of global GDP, 30% of global trade, 26% of FDI flows, and 45% of the population.
Source
The Hindu.