RCEP offers PACKAGE to India

India Received a Package from RCEP

India received a package from Regional Comprehensive Economic Partnership(RCEP) nations for returning to negotiable table. The members of a trade bloc have urged India to convey its initial response to the package offered by May 15 as the Indo-Pacific region braces for a post-Covid-19 economic order

What is RCEP? 

RCEP is group of 10 Southeast Asian Nations(Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and 5 other countries(Australia, China, Japan, New Zealand, and South Korea). The main of RCEP is to make easier availability of goods and services across these regions.

Why India didn't join RCEP before?

•  Inadequate protection  against surges in Imports. China would flood the market with Cheaper products with No-anti Dumping Duty.
•  On several products India raised imports duty between 2014-2019 due to safe domestic market. But RCEP nation wanted to using tariff rate of base year before 2014.

 What  Package ? 

1. India's preference to use more recent most-favoured nation tariff rates than the 2014 base rates but only to limited numbers of products.
   

2. Incorporate a volume based safeguard mechanism. It just like put a limit on a specific products.

India is so Important ? 

• India has much to contribute, not only in terms of its huge market, but also its participation in regional affairs as a whole said by some RCEP members.
• India contribution in terms of active Pharmaceutical ingredients, medical research  and the medical capacity to support others. 

Join Why? 

• India will have first mover advantage. They can change rules and regulation according to their interest.
•  India have comparative advantage in the services sector. This will create opportunities for Indian market o access new markets.

Not Join ?

• India has a trade deficit with 11 of the 15 RCEP countries. And after RCEP the free trade agreement the trade deficit would increase.
•  Major problem is China because used non-tariff barriers technique  to prevent India from growing its exports. 

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