India’s Stand on RCEP

India’s Stand on RCEP

Why in news ?

Association of Southeast Asian Nations (ASEAN) Secretary-General has said that Southeast Asian countries wants India to join the Regional Comprehensive Economic Partnership (RCEP).India’s Stand on RCEP

What is RCEP?

  • It is a China-led initiative for a regional trading bloc that will comprise one third of the world’s population and 29% of the world’s GDP.
  • A regional trading bloc is a co-operative union where a group of countries agree to protect its member nations from imports of other non-members.
  • RCEP is a free trade area (FTA) consisting of 10 ASEAN members and five of the bloc’s dialogue partners — China, Japan, South Korea, Australia and New Zealand. It was signed in 2020.
  • Objective: To give preferential treatment for trade between the member countries either through lower tariffs, preferential market access, customs union or free trade in specific sectors.

India and RCEP:

  • India was a founding member of the RCEP. In 2019, India decided to withdraw from the RCEP negotiations.
  • India’s decision to exit the RCEP was based on concerns about the impact on its domestic economy.
  • Primary concerns included fears of an influx of Chinese goods into the Indian market, affecting local industries.
  • Issues related to mobility in services and reservations from the agriculture sector and small businesses were contributing factors.

Source – The Hindu

Download Our App

More Current Affairs

Share with Your Friends

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilations

Related Articles

Youth Destination Facilities