Regional Comprehensive Economic Partnership
Posted on : 05 Dec 2019Views: 236
- The Regional Comprehensive Economic Partnership (RCEP) agreement is being negotiated among 10 ASEAN members and their six trade partners -- Australia, China, India, Japan, Korea and New Zealand
- This would create a free trade pact covering a third of the world's economy.
- This means a zero-customs duty zone in a geography that contributes 34% of global gross domestic product (GDP) and 40% of world trade. The region is also home to almost half of the world’s population.
Benefits of RCEP Agreement for India
- RCEP is expected to provide market access for India’s goods and services exports and encourage greater investments and technology into India.
- It would also facilitate India’s MSMEs to effectively integrate into the regional value and supply chains.
- India is not a member of the Asia-Pacific Economic Co-operation (APEC) which is a grouping of twenty-one countries in the Asia Pacific region with an aim to deepen and strengthen economic and technological cooperation amongst APEC member countries.
- India enjoys a comparative advantage in areas such as information and communication technology, IT-enabled services, professional services, healthcare, and education services.
- In addition to facilitating foreign direct investment, the RCEP will create opportunities for Indian companies to access new markets. This is because the structure of manufacturing in many of these countries is becoming more and more sophisticated, resulting in a “servicification” of manufacturing.
RCEP would help India streamline the rules and regulations of doing trade, which will reduce trade costs. It will also help achieve its goal of greater economic integration with countries East and South East of India through better access to a vast regional market ranging from Japan to Australia. The RCEP can be a stepping stone to India’s “Act East Policy.”
Article Related Questions
Consider the following statements regarding Regional Comprehensive Economic Partnership (RCEP)
1.It is a proposed mega-regional Free Trade Agreement (FTA)
2.When realized it will become the largest trade bloc in terms of population
3.The RCEP negotiations were launched at the Phnom Penh summit between the leaders of ASEAN and its six partners.
Which of the statements given above is/are correct?
2.1 and 2 only
4.1, 2 and 3
Right Ans : 1, 2 and 3