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.
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
3.
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