{"id":46381,"date":"2025-06-27T18:59:31","date_gmt":"2025-06-27T13:29:31","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=46381"},"modified":"2025-06-28T20:02:51","modified_gmt":"2025-06-28T14:32:51","slug":"reconsidering-cptpp-integrating-asean-eu","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/27-06-2025\/reconsidering-cptpp-integrating-asean-eu","title":{"rendered":"Reconsidering CPTPP, Integrating with ASEAN &amp; EU"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/International Relation; Global Groupings<\/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>In an era marked by <strong>rising protectionism and fractured global trade alliances<\/strong>, <strong>India<\/strong> needs to reconsider <strong>joining <\/strong>the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (<strong>CPTPP<\/strong>)<strong> <\/strong>and deepen <strong>its integration with ASEAN and the European Union (EU)<\/strong> to safeguard its economic future.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Status of Global Trade<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Post-pandemic global trade has gained traction, with persistent inflation, tariff disputes, and conflicts such as <strong>Russia-Ukraine and Israel-Iran <\/strong>have disrupted trade flows.<\/li>\n\n\n\n<li>Multilateralism has given way to regionalism. Countries focusing on <strong>inward-looking policies,<\/strong> <strong>re-shoring industries, and recalibrating trade alliances<\/strong> in favor of economic security.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why does CPTPP matter to India?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CPTPP comprises <strong>11 Pacific Rim countries<\/strong> including <strong>Japan, Vietnam, Canada and Australia,<\/strong> representing<strong> nearly 13% of global GDP.<\/strong><\/li>\n\n\n\n<li><strong>India\u2019s entry into the CPTPP<\/strong> could offer:\n<ul class=\"wp-block-list\">\n<li><strong>Market Diversification: <\/strong>Reducing overdependence on select geographies like the <strong>US and China.<\/strong><\/li>\n\n\n\n<li><strong>Strategic Presence in the Indo-Pacific: <\/strong>Enhancing India\u2019s footprint in a region where China already holds sway <strong>(Reinforce its Act East Policy).<\/strong><\/li>\n\n\n\n<li><strong>Supply Chain Integration: <\/strong>Tapping into advanced manufacturing and digital trade networks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>However, <strong>India needs<\/strong> to align with strict labor, environmental, and intellectual property standards\u2014areas where domestic reforms may be politically sensitive.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India, ASEAN and EU<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ASEAN nations are deeply embedded in <strong>global value chains,<\/strong> particularly in electronics and manufacturing. Strengthening ties with ASEAN:\n<ul class=\"wp-block-list\">\n<li>Improve connectivity and reduce trade deficits.<\/li>\n\n\n\n<li>Support India\u2019s role in regional supply chains and digital trade.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India and ASEAN have developed a <strong>Comprehensive Strategic Partnership<\/strong>, with cooperation spanning trade, connectivity, digital transformation, and maritime security.<\/li>\n\n\n\n<li>Economically, <strong>India and ASEAN<\/strong> are linked through the <strong>ASEAN-India Free Trade Agreement (AIFTA)<\/strong>, which came into effect in 2010.\n<ul class=\"wp-block-list\">\n<li>It has significantly boosted trade, with bilateral merchandise trade reaching <strong>over $130 billion in 2024.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India-EU Free Trade Agreement (FTA): EU is India\u2019s second-largest trading partner<\/strong>, and a formal FTA could open doors to <em>advanced manufacturing, green tech, digital services collaboration, and innovation.<\/em><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>About CPTPP<\/strong><br>&#8211; It was signed in 2018 in Santiago, Chile.<br>&#8211; <strong>Members:<\/strong> Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.<br>&#8211; It builds on the original <strong>Trans-Pacific Partnership (TPP)<\/strong> but suspends certain provisions to reflect evolving priorities.&nbsp;<br>1. It covers a <strong>market of over $13.5 trillion in GDP.<\/strong><br>&#8211; <strong>Current Chair (2025):<\/strong> By Australia (Theme: Delivering Sustainable Trade and Resilient Growth).<br>&#8211; <strong>Objectives:<\/strong><br>1. Boost trade and investment among member countries by eliminating tariffs and reducing non-tariff barriers.<br>2. Promote sustainable and inclusive trade, with commitments on labor rights, environmental protection, and support for small and medium-sized enterprises (SMEs).<br>3. Facilitate regional economic integration, especially in the Indo-Pacific, by creating a platform open to future members who meet its high standards<br><strong>About ASEAN<\/strong><br>&#8211; <strong>Members: <\/strong>Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia.<br>&#8211; <strong>Primary Objective:<\/strong> To promote political and economic cooperation and regional stability.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other Significances of Multilateralism<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Boosting Export Competitiveness: <\/strong>India\u2019s exports have struggled with high logistics costs and limited value chain integration. Joining high-standard trade frameworks like CPTPP and finalizing the India-EU FTA could:\n<ul class=\"wp-block-list\">\n<li>Enhance access to high-income markets.<\/li>\n\n\n\n<li>Encourage domestic reforms in standards, labor, and IP rights.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>MSME Imperative:<\/strong> India\u2019s Micro, Small, and Medium Enterprises (MSMEs), which account for 40% of exports, stand to benefit the most from broader market access.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns Ahead of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Looking At India\u2019s Immediate Challenge: <\/strong>India now faces the prospect of a <strong>more fragmented trading system<\/strong>. It needs:\n<ul class=\"wp-block-list\">\n<li><strong>Secure bilateral gains with the US<\/strong>, where possible.<\/li>\n\n\n\n<li><strong>Accelerate engagements with trade-friendly partners<\/strong> to hedge against US-induced volatility.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Recent FTAs:<\/strong> India\u2019s traditional trade scepticism has gradually shifted toward a more open stance, reflected in recent <strong>FTAs<\/strong> and <strong>partnerships<\/strong> with <strong>Australia, United Arab Emirates, and United Kingdom.<\/strong><\/li>\n\n\n\n<li><strong>Strategic Actions for India<\/strong>: <strong>Submit a formal application to the CPTPP<\/strong>, aligning itself with markets like <strong>Japan and Korea<\/strong>, to attract foreign investment, reform domestic regulations to <strong>meet global standards<\/strong>, and make Indian exports <strong>more competitive<\/strong>.<\/li>\n\n\n\n<li><strong>Regulatory and Standards Alignment:<\/strong> CPTPP and EU trade frameworks <strong>demand high compliance<\/strong> with labor rights, environmental safeguards, and intellectual property norms.<\/li>\n\n\n\n<li><strong>Protection of Domestic Industries: <\/strong>India\u2019s MSMEs, agriculture, and manufacturing sectors fear being <strong>outcompeted by cheaper imports<\/strong> if tariffs are slashed.\n<ul class=\"wp-block-list\">\n<li>It was a<strong> major reason for India\u2019s withdrawal from RCEP<\/strong> and continues to shape its cautious approach to CPTPP.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Tariff and Non-Tariff Barriers:<\/strong> India\u2019s relatively high tariffs and complex customs procedures could become sticking points in negotiations.\n<ul class=\"wp-block-list\">\n<li>The EU, in particular, has pushed for greater market access in sectors like automobiles, wines, and dairy\u2014areas where India remains sensitive.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Geopolitical Sensitivities:<\/strong> India\u2019s strategic calculus\u2014especially regarding China\u2019s influence in regional trade blocs\u2014adds comple<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Calibrated Re-entry Strategy: <\/strong>Reassess CPTPP with a phased-in negotiation framework focusing on services, IP, and digital trade safeguards.<\/li>\n\n\n\n<li><strong>Upgrade Domestic Standards: <\/strong>Invest in logistics, testing, and quality infrastructure to meet EU and CPTPP norms.\n<ul class=\"wp-block-list\">\n<li>MSME clusters need capacity-building schemes for international compliance.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Revive FTA Talks with EU &amp; ASEAN: <\/strong>Push for balanced FTA clauses with EU (e.g., digital sovereignty, green taxonomy flexibility).\n<ul class=\"wp-block-list\">\n<li>Improve implementation of India-ASEAN FTA to resolve non-tariff barriers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Leverage Strategic Partnerships: <\/strong>Use forums like QUAD, IPEF, and BIMSTEC to align security, supply chains, and standards.\n<ul class=\"wp-block-list\">\n<li>Coordinate trade strategy with geopolitical goals.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> In light of global trade shifts, do you think India should reconsider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and deepen integration with ASEAN? Highlight the potential challenges.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.business-standard.com\/opinion\/editorial\/amid-trade-disorder-india-must-reconsider-cptpp-integrate-with-asean-eu-125062501423_1.html\" rel=\"nofollow noopener\" target=\"_blank\">Source: BS<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/06\/UPSC-Editorial-Analysis-27-June-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In an era marked by rising protectionism and fractured global trade alliances, India needs to reconsider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and deepen its integration with ASEAN and the European Union (EU) to safeguard its economic future.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-46381","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46381","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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=46381"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46381\/revisions"}],"predecessor-version":[{"id":46521,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46381\/revisions\/46521"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=46381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=46381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=46381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}