{"id":31900,"date":"2024-11-08T17:28:29","date_gmt":"2024-11-08T11:58:29","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=31900"},"modified":"2024-11-08T19:23:27","modified_gmt":"2024-11-08T13:53:27","slug":"india-should-be-part-of-rcep-and-cptpp","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/08-11-2024\/india-should-be-part-of-rcep-and-cptpp","title":{"rendered":"India Should be Part of RCEP and CPTPP"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Niti Aayog CEO stated that India should join the <strong>Regional Comprehensive Economic Partnership (RCEP)<\/strong> and <strong>Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)<\/strong> trade blocs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Regional Comprehensive Economic Partnership (RCEP)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The RCEP bloc<\/strong> comprises;\n<ul class=\"wp-block-list\">\n<li><strong>10 ASEAN group members:<\/strong> Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam and&nbsp;<\/li>\n\n\n\n<li><strong>Five FTA partners<\/strong>: China, Japan, South Korea, Australia and New Zealand.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>These RCEP countries account for about <strong>30%<\/strong> of the global GDP and <strong>30%<\/strong> of the world population.<\/li>\n\n\n\n<li><strong>India pulled out of the RCEP in 2019<\/strong> after entering negotiations in 2013, in view that reduced customs duty would result in a flood of imports from China and trade deficit with other RCEP nations.\n<ul class=\"wp-block-list\">\n<li>The landmark agreement was signed in<strong> November 2020.&nbsp;<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CPTPP is a free trade bloc <strong>spanning five continents<\/strong>, made up of Pacific rim countries of Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam, the UK and Japan.<\/li>\n\n\n\n<li>The pact requires countries to <strong>eliminate or significantly reduce tariffs<\/strong> and make strong commitments to opening services and investment markets.<\/li>\n\n\n\n<li>It also has rules addressing competition, intellectual property rights and protections for foreign companies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Joining the trade blocs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capturing the &#8216;China Plus One&#8217; Opportunity:<\/strong> As global businesses look to diversify beyond China, countries like Vietnam, Indonesia, Malaysia, Turkey, and Mexico have already capitalized on this trend.\n<ul class=\"wp-block-list\">\n<li>India has the potential to emerge as an attractive alternative destination.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Boosting the MSME Sector: <\/strong>Micro, Small, and Medium Enterprises (MSMEs) contribute approximately 40% of India\u2019s exports.\n<ul class=\"wp-block-list\">\n<li>Integrating into larger trade blocs like RCEP and CPTPP could enhance their market reach and growth prospects.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economic Growth: <\/strong>The World Bank&#8217;s India Development Update emphasized that joining RCEP could boost trade, investment, and GDP growth.<\/li>\n\n\n\n<li><strong>Trade Expansion:<\/strong> India&#8217;s economy, projected to be the third largest by 2027, would benefit from greater integration into global markets, leading to long-term sustainable development.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges of joining these blocs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trade Deficit Concerns:<\/strong> India\u2019s existing trade deficit with China is a major deterrent. In FY2023, bilateral trade with China stood at $118 billion, with a deficit of $85 billion.<\/li>\n\n\n\n<li><strong>Impact on Domestic Sectors:<\/strong> MSMEs and some agriculture sectors will face increased competition from international imports, potentially affecting their viability.&nbsp;<\/li>\n\n\n\n<li><strong>ASEAN\u2019s trade deficit with China<\/strong> has jumped from $ 135.6 billion in 2023 from $ 81.7 billion in 2020.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India should adopt a phased approach<\/strong> to tariff reduction and align its trade policies to be more globally competitive. Ensuring support for vulnerable sectors like MSMEs through subsidies, training, and infrastructure upgrades is needed.<\/li>\n\n\n\n<li><strong>Strengthening the manufacturing ecosystem<\/strong> and enhancing quality standards can help Indian products compete effectively on the global stage.&nbsp;<\/li>\n\n\n\n<li><strong>Balanced Trade Negotiations:<\/strong> While joining RCEP and CPTPP, India must negotiate terms that safeguard its economic interests.\n<ul class=\"wp-block-list\">\n<li>This includes securing provisions that prevent dumping and protect strategic industries.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/economy\/news\/india-should-be-part-of-rcep-cptpp-niti-aayog-ceo-bvr-subrahmanyam-124110701066_1.html\" target=\"_blank\" rel=\"noopener\"><strong>BS<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Niti Aayog CEO stated that India should join the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade blocs.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31900","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=31900"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31900\/revisions"}],"predecessor-version":[{"id":31909,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31900\/revisions\/31909"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=31900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=31900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=31900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}