Relevance : GS Paper II
Why has this issue cropped up?
Leaders of ASEAN have committed to conclude negotiations for RCEP by the end of 2019.
A step further
Some members suggested that countries not ready to join the RCEP could join at a later date.
Significance of RCEP
RCEP- FTA would encompass 40% of all global trade among economies that make up a third of global GDP.
India’s case
- India’s concerns:
- opening its markets for cheaper goods from other countries
- RCEP countries open their markets for Indian services.
- India has a trade deficit with as many as 11 of the RCEP countries.
- India has also made tagging the “Country of Origin” on all products a sticking point in RCEP negotiations.
Why India must join RCEP
- India would miss out on regional trade.
- Will lose the ability to frame the rules for the grouping.
- It would undermine India’s plans for economic growth.
What lies ahead?
- India will be expected to keep up intense negotiations.
- India need to give a clear indication that it is joining RCEP.
- has begun consultations with stakeholders from industries that are most worried about RCEP.
Conclusion
India cannot afford to fall out of the free trade agreement negotiations.
