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).
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
