Why is RCEP bad for India?

The economic reasons listed, the single largest reason for India’s reluctance to join the RCEP was China. India feared the agreement would become a free trade deal with China through the back door, even through other countries, which is one of the reasons New Delhi is currently reviewing a number of FTAs in the region.

Is RCEP good for India?

Once implemented, the RCEP will either reduce or eliminate tariffs on a range of goods and services and set up rules on investment and competition, and ensure protections for intellectual property. Economists and policy analysts have argued that India would in fact benefit from joining the RCEP.

What is stopping India from joining RCEP trade deal?

On 4 November last year, India announced its decision to not join RCEP. This came amid concerns that elimination of tariffs would open India’s markets to imports, which in turn could harm local producers. The decision also reflected PM Modi’s clarion call for an Atmanirbhar Bharat.

How Will not joining RCEP affect India?

A report by the Peterson Institute on International Trade supports the view that non-participation is a policy mistake, showing that by not joining the RCEP, India could be looking at a GDP loss of INR 450 billion, compared to a gain of INR 4,450 billion if it were an RCEP participant.

What are the disadvantages of RCEP?

It is not the most open FTA due to its low coverage of trade imports for which 90\% of tariffs will be eliminated. It also does not set strict standards and restrictions for its member nations in areas such as intellectual property rights protection, labour market, competition policy and internet rules.

How would Rcep impact the global economy?

The accession of India would significantly increase the shares to approx. 1/3 of global real GDP in 2020 and the share could increase by 5\% to 2030 (according to IHS Markit Global Link Model). With India’s access, the population of RCEP would go up to 3.65 billion people which is 47\% of the world population.

How will China benefit from Rcep?

It will be conducive to China to improve its own business climate and attract more goods and production factors of high quality into the China market, thus promoting our industrial reform to a higher level and toward digital transformation.

Is RCEP a threat to India’s economy?

Hence, a pact like the RCEP will further hurt India’s burgeoning trade deficit with the participating countries. India’s history of signing a host of free trade agreements (FTAs) and comprehensive economic cooperation agreements (CECAs) with the South-east Asian nations has also not bode well for the country.

Is it possible for India to join RCEP agreement?

“It also does not address satisfactorily India’s outstanding issues and concerns. In such a situation, it is not possible for India to join RCEP Agreement.”

What is ASEAN’s new RCEP deal?

RCEP was originally being negotiated between 16 countries — ASEAN members and countries with which they have free trade agreements (FTAs), namely Australia, China, Korea, Japan, New Zealand and India. Objective: The purpose of the deal is to create an “integrated market” spanning all 16 countries.

What are the issues with RCEP?

Issue of Market Access: RCEP also lacked clear assurance over market access issues in countries such as China and non-tariff barriers on Indian companies.