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    Pros and Cons-Rcep

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    Sumeer Beri
    The documents contains an introduction of RCEP and its advantages and disadvantages if India agrees to the agreement

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    Pros and Cons-Rcep

    Uploaded by

    Sumeer Beri
    269 views1 page
    The documents contains an introduction of RCEP and its advantages and disadvantages if India agrees to the agreement

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    Pros and Cons-rcep

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    © © All Rights Reserved

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    The documents contains an introduction of RCEP and its advantages and disadvantages if India agrees to the agreement

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    269 views1 page

    Pros and Cons-Rcep

    Uploaded by

    Sumeer Beri
    The documents contains an introduction of RCEP and its advantages and disadvantages if India agrees to the agreement

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    The Regional Comprehensive Economic Partnership (RCEP) has been under negotiation since

    2013. It is a trans-Asia mega trade agreement which comprises the 10 ASEAN countries and
    their six summit partners: India, China, Japan, South Korea, Australia and New Zealand. India
    wants a slower and graduated elimination of tariffs in order to safeguard the interests of Indian
    domestic industry and to encourage the Make in India project. A four-member Group of
    Ministers (GoM) is currently deliberating the pros and cons of RCEP membership.

    Pros of RCEP for India

     It would facilitate India’s MSMEs to effectively integrate into the regional value and supply
    chains.
     It presents a decisive platform for India which could enhance strategic and economic status in
    the Asia-Pacific region and can complement its Act East Policy.
     It can augment India’s existing free trade agreements with the Association of South-East
    Asian Nations (ASEAN).
     The RCEP would help India streamline the rules and regulations of doing trade, which
    will reduce trade costs.
     India enjoys a comparative advantage in the services sector such as information and
    communication technology, healthcare, and education services etc. Thus, RCEP will create
    opportunities for Indian companies to access new markets.

    Cons of RCEP for India

     Widening the Tariff elimination due to RCEP could worsen the trade deficit, at $105.2 billion in
    2018-19.
     Since import duties are also a source of revenue for India, it could experience
    a disproportionate loss of customs revenue.
     India has demanded that the ASEAN countries should open up their services sector so that
    Indian professionals and workers can have easier entry into their market.
    However, ASEAN countries are very sensitive about protecting this sector and have not
    offered much liberalisation even within the bloc to each-other.
     RCEP may threaten farm livelihoods, autonomy over seeds and also endangers the country’s
    self-sufficient dairy sector.
     Both Indian industry and government have serious reservations on India joining the RCEP
    since this would bring India into a free trade relationship with China. This is likely to worsen
    the already large trade deficit India has with China (more than US$60 billion at present)

    Reference : https://www.thehindubusinessline.com/economy/the-fear-about-rcep-destroying-
    domestic-industry-is-not-without-reason/article29653981.ece
    https://www.hindustantimes.com/analysis/opting-out-of-rcep-may-push-india-on-the-margins-of-
    asia/story-MvgXS4L8eBEYYuu2RXXqXP.html

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