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LATEST NEWS UPDATES | India’s no to RCEP could still be a no -Biswajit Dhar

India’s no to RCEP could still be a no -Biswajit Dhar

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published Published on Nov 21, 2020   modified Modified on Nov 24, 2020

-The Hindu

The circumstances under which New Delhi had distanced itself from the RCEP negotiations have hardly improved

Last week, 15 East Asian countries agreed to take their economic integration several notches higher by forging the Regional Comprehensive Economic Partnership (RCEP), the largest free trade agreement (FTA) ever. In 2019, RCEP members accounted for about 30% of world output and population and 28% of world trade. But more importantly, about 44% of their total trade was intra-RCEP, which is a major incentive for the members of this agreement to agree to the deal for this could contribute to the strengthening of the regional value chains. This may well prove propitious for the RCEP member countries in their efforts to recover from the downturn.

The objectives

The initiative to establish RCEP was taken by the member-states of the Association of Southeast Asian Nations (ASEAN) in 2011. These countries had adopted a resolution “to establish an ASEAN-led process by setting out principles” that would allow ASEAN members to “engage interested ASEAN FTA partners in establishing a regional comprehensive economic partnership agreement”. The “Guiding Principles and Objectives”, the de facto negotiating mandate for RCEP, spoke of “progressively eliminating tariff and non-tariff barriers on substantially all trade in goods” and achieving “high level of tariff liberalization, through building upon the existing liberalization levels between RCEP participating countries and through tariff elimination on a high percentage of both tariff lines and trade value”. As regards services, RPCs agreed to conclude a comprehensive and high quality agreement that would “substantially eliminate restrictions and/or discriminatory measures”.

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The Hindu, 21 November, 2020, https://www.thehindu.com/opinion/lead/indias-no-to-rcep-could-still-be-a-no/article33145957.ece?homepage=true


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