Regional Comprehensive economic partnership (RCEP) is free trade agreements. It was formally launched in November 2012 with 16 nations which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, has FTAs with India, Australia, China, South Korea, Japan and New Zealand. In this article, we are sharing with you What is RCEP trade deal that India opted out of? Why India Left RCEP?
What is RCEP trade deal that India opted out of? Why India Left RCEP?
Regional Comprehensive economic partnership (RCEP) is free trade agreements between the 10 countries and its 6 FTA partners (including India). let’s know what is RCEP free trade It is basically an agreement between the two countries for the import and export goods in the country with little or without restriction. This trade deal is one of the largest trade deals in the market yet. this country accounts for almost half of the world population. And the motto of this deal is to make an Integrated market and making it easier for the goods & products service for each country.
India has signed a free trade agreement with many countries with Sri Lanka in 1998, Afghanistan 2003, Thailand 2004, Singapore 2005, Bhutan 2006, Nepal 2007, etc and many more countries. India has joined RCEP, because Indian industry feels that being part of RCEP would allow the country to enter into world market at next level. And if the domestic market becomes competitive in future, so we would have opportunity through this RCEP. But the things not gone as planned and India Decided to left the RCEP due to some reasons-
Why India Left RCEP:-
- Indian government left the RCEP because of concern about getting swamped by import under the agreement which is putting the domestic industry and agriculture at risk. And agriculture is back bone of India.
- Dairy products of India have also feared if the international dairy products would enter into the Indian market. it would cause a loss for them. so the Indian had to take this decision for the nation’s development and the present form of this agreement does not go as per basic spirit and agreed to guide the principle of RCEP.
The commerce minister said that the decision of breaking the agreements with the RCEP will boost the program “Make in India” and the agreement with the RCEP was against our economic interest and National priorities. It was the best decision of the government to protect our India’s small businesses, there were also worries for the country that the market would be flooded with the Chinese product and it can create a problem for our farmers and low–grade businesses. We are capable of doing anything we just need proper guidance and leader for that. India has a very good reputation in the world market. And the Chinese government has offered India to Join the RCEP whenever India wants.
And some people and some articles are saying that this decision is under political pressure, it is right or wrong it cannot be said, but this decision will boost our nation and can also improve our nation’s GDP.
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