{"id":2846,"date":"2020-12-02T15:34:42","date_gmt":"2020-12-02T10:04:42","guid":{"rendered":"https:\/\/www.classiciasacademy.com\/blog\/?p=2846"},"modified":"2020-12-02T15:34:42","modified_gmt":"2020-12-02T10:04:42","slug":"regional-comprehensive-economic-partnership","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/regional-comprehensive-economic-partnership\/","title":{"rendered":"Regional Comprehensive Economic Partnership"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">In News<\/h3>\n\n\n\n<p>RCEP has been signed by 15 countries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">In-Detail<\/h3>\n\n\n\n<ul><li>Without India, 15\ncountries signed their participation in the RCEP.<\/li><li>India opted to stay\nout but the new trading block will remain open to India to return for\nnegotiations.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What is RCEP?<\/h3>\n\n\n\n<ul><li>RCEP is a Regional\nComprehensive Economic Partnership.<\/li><li>At present, it is the\nlargest regional trading agreement.<\/li><li>RCEP has been negotiated between 16 countries which includes ASEAN\nmembers and countries with which they have free trade agreements (FTAs).<\/li><li>The free trade\nagreement countries are <strong>China, Korea,\nAustralia, Japan, New-Zealand and India.<\/strong><\/li><li>The main motive of\nthis agreement is <strong>to make it easier for\nthe products and services of these countries and to be available across this\nregion.<\/strong><\/li><li>Since 2013,\nnegotiations were made to chart out this deal and India was expected to be the\nmain member.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why Did India Walk Out?<\/h3>\n\n\n\n<ul><li>On November 4, 2019 India\ndecided to exit the discussions on significant outstanding issues.<\/li><li>The reason behind\nthis, India has been consistently raising fundamental issues and concerns\nthroughout the negotiations.<\/li><li>They had not resolved\nby the deadline to commit to signing the deal.<\/li><li>India decided to\nsafeguard the industries like agriculture, dairy and the service sectors.<\/li><li>The current structures\nof RCEP do not resolve these issues and concerns.<\/li><li>One more reason\nis the presence of China.<\/li><li>India was\nuncomfortable with its commitments under RCEP, as it has taken various measures\nto reduce its exposure to China.<\/li><li>The unresolved issues\nduring the RCEP were related to the exposure that India would have to China.<\/li><li>There were inadequate\nprotections against surges in imports.<\/li><li>India will be unable to establish countermeasures to raise tariffs on\nproducts when their imports extended a certain threshold if it had joined\nthe RCEP.<\/li><li>India also wanted RCEP\nto exclude Most Favoured Nation (MFN) obligations from the investment and also\nextend benefits to the member countries for sensitive sectors like defence.<\/li><li>RCEP lacked clear\nassurance on market access issues in countries like China and non-tariff\nbarriers on Indian Companies.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on India<\/h3>\n\n\n\n<ul><li>India\u2019s decision would\nimpact its bilateral ties with RCEP member nations.<\/li><li>This will leave India\nwith less scope to tap the large market that RCEP represents.<\/li><li>The member countries\nmay incline to focus on bolstering economic ties with the blocks.<\/li><li>India\u2019s decision could\nalso impact the Australia-India-Japan network in the Indo-Pacific.<\/li><li>It may halt the talks\nto promote a <strong>Supply Chain Resilience\nInitiative<\/strong> among the three countries.<\/li><li>According to an\nassessment, the growth in trade, CAGR with the members for the past five\nfinancial years was only 7.1%.<\/li><li>But there has been a\ngrowth rate in both imports and exports to these FTA partners.<\/li><li>The utilization rate\nof FTAs with India was moderated with partners like Bhutan, Thailand,\nAfghanistan, Singapore, Sri Lanka, Japan, Nepal, Republic of Korea and\nMalaysia.<\/li><li>With 11 of the 15 RCEP\ncountries, India has trade deficits.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">India\u2019s Option<\/h3>\n\n\n\n<ul><li>India has the option of joining the agreement without having to wait 18 months as stipulated for new members.<\/li><li>The possible alternative may be exploring its existing bilateral FTAs with RCEP members.<\/li><li>India has agreements with ASEAN bloc, South Korea and Japan.<\/li><li>India is negotiating with members like New Zealand and Australia.<\/li><li>Some other agreements are the India-Singapore CECA, the India-Bhutan Agreement on Trade Commerce and Transit, the India-Nepal Treaty of Trade.<\/li><li>India is negotiating bilateral agreements with the US and the EU.\u00a0 <\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>In News RCEP has been signed by 15 countries. In-Detail Without India, 15 countries signed their participation in the RCEP. India opted to stay out <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/regional-comprehensive-economic-partnership\/\" title=\"Regional Comprehensive Economic Partnership\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Regional Comprehensive Economic Partnership - UPSC Current Affairs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/regional-comprehensive-economic-partnership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regional Comprehensive Economic Partnership - UPSC Current Affairs\" \/>\n<meta property=\"og:description\" content=\"In News RCEP has been signed by 15 countries. In-Detail Without India, 15 countries signed their participation in the RCEP. 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