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Regional Comprehensive Economic Partnership (RCEP)
Why is it in news?
- Government officials said it would be ‘premature’ to suggest India could be cut out of the Regional Comprehensive Economic Partnership (RCEP) if it doesn’t agree to join it by the year-end.
- It is being negotiated by 16 countries led by the ASEAN bloc.
More in news
- Reply to Malaysian PM Suggestion: The officials rejected a suggestion to that effect by Malaysian Prime Minister Mahathir Mohammed, who spoke on the sidelines of the ASEAN summit held in Bangkok.
- India’s stand:(1) Commerce Ministry reiterating that India is ‘consistently’ engaged with RCEP negotiations, which will see a free trade agreement this includes ASEAN countries, China, Japan, South Korea, Australia and New Zealand.(2) Indian delegations have a series of meetings planned in the next few weeks to discuss the way forward in RCEP.
- Unresolved issues:(1) India also has shown it is keen for the partnership to work, as seen by our consistent engagement on the issue.(2) There are some issues that need to be figure out.
- Bangkok declaration: ASEAN leaders stated their “strong commitment” to concluding RCEP negotiations, adding that ASEAN partners like India must “prioritise RCEP negotiations and work with ASEAN to conclude the RCEP negotiations within this year.
- Reasons behind India’s opposition to RCEP:
- Prospect of opening up its markets to China:(1) Even though the grouping has accepted dual tariff rates for trade with China and other RCEP members, Indian industry has opposed RCEP for the larger impact on steel and aluminium, copper, pharmaceuticals and textile products and of allowing RCEP countries especially China and South Korea to “flood the Indian market.(2) India is the only RCEP country without a free trade pact with China, and has trade deficits with 11 of 16 RCEP countries.
Source
The Hindu