The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement between the 10 ASEAN nations and their six FTA partners - Australia, China, India, Japan, South Korea and New Zealand. Negotiations for the RCEP agreement have been ongoing since 2012. While the RCEP could provide economic opportunities for India and boost trade, there are also concerns that it could harm domestic industries in India by increasing competition and widening the trade deficit with countries like China. As a result, the Indian government has taken a cautious approach to the RCEP negotiations.

1. Soham Patni MBA 2nd Year PUMBA

2.  Discussion was Started in 2012
 Participating countries are Asian Pacific Countries
 Which Includes 10 ASEAN countries as Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore,
Thailand, Vietnam
 Remaining Six Countries are Australia, China, India, South Korea,
Japan, New Zealand
 It includes almost half of world population around 3.52 Bn

4.  RCEP Launched : 20 Nov 2012 Phnom Penh, Cambodia
 1st Round of Negotiations 9 to13 May 2013, Bandar Seri Begawan, Brunei
 1st RCEP Ministerial Meeting 19 August 2013, Bandar Seri Begawan,
Brunei
 2nd RCEP Ministerial Meeting — 27 August 2014, Nay Pyi Taw, Myanmar
 6th Round of Negotiations — 1-5 Dec 2014, Greater Noida, India
 1st Joint Leaders’ Statement Negotiations - 14 Nov 2017, Philippines
 6th RCEP Ministerial Meeting — 30-31 August 2018, Singapore
 24th Round of Negotiations — 18-27 Oct 2018, Auckland, New Zealand
 2nd Joint Leaders’ Statement Negotiations — 14 November 2018,
Singapore

5. 1) Trade in Goods
2) Trade in Services
3) Investment
4) Economic and Technical Cooperation
5) Intellectual Property
6) Dispute Settlement
7) Competition
8) Other Issues

6. Indian Manufacturing Industry is not ready for it
India’s export to RCEP countries accounts about 15 % of
Total Export and imports are 35% of total import
India have a trade deficit over 60 Bn with China and also
in deficit with other
India is highly cautious against China
2nd Major Issue is Skilled labour in India

7.  PM Modi has made a Committee under Commerce Minister Suresh
Prabhu
 Suresh Prabhu was went to Singapore for minister meeting in Nov 2018
 In joint Leaders statement they concluded as India will give more than
86% of market access except China
 India can put tariffs for 20 Years on secretive industries like steel and
textiles
 India reduce tariffs upto 46% for China for time and Council granted this
request
 2nd Gift for India was RCEP agreed on India’s skilled labour free access

8. It will provide more employment
It may boost our economy
It may provide various opportunities for MSME sector
It will Create healthy competition in market
It will provide Geopolitical ties and access to other
countries
We can do Investments in potential countries
We can enjoy Benefits as EU

9. It could be disastrous for economy
It may harm our sensitive sectors as steel and agriculture
It may destroy our Industrial sector
We don’t have enough capital for Investments
We can face problems as Brexit in future
Government couldn’t protect our industries further

10.  “India’s joining RCEP Trade Pact could be disastrous” _ NITI Aayog
 “India need to be extra cautious and taken into account geostrategic
issues while moving ahead with RCEP deal” – Former Chief
Economic Adviser Mr. A. Subramanyam
 “RCEP will give new direction to India and may provide various
opportunities’
 “RCEP have its own Pros and Cons we have to deal cautiously”
Suresh Prabhu
 “We couldn’t allow RCEP in near future it will be harmful for
agriculture sector” –Agriculture Minister Mr Radha Mohan Singh