Regional Comprehensive Economic Partnership (RCEP)
Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the countries of Association of South East Asian Nations (ASEAN) namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and the five states with which ASEAN has free trade agreements (Australia, China, Japan, South Korea and New Zealand).
RCEP member states accounted for a population of 3.4 billion people and a total Gross Domestic Product of $49.5 trillion.
Objectives of RCEP:
Economic Integration
Trade Facilitation
RCEP aims to improve market access for goods and services among member countries.
RCEP strives to promote and facilitate foreign direct investment (FDI) among member countries.
Economic cooperation
Inclusive and Sustainable Development
RCEP and India
India was initially part of the negotiations for RCEP and played an active role in shaping the agreement.
However, in November 2019, India decided not to join the final agreement due to concerns related to market access, trade deficits, and safeguarding its domestic industries.
Why is it in news?
Four years after India walked out of the RCEP agreement, neighbours Sri Lanka and Bangladesh are now considering their chances of membership in the 15-nation trading bloc.
Sri Lanka has already applied to join the RCEP.
The Bangladesh government — whose Commerce Ministry has recommended joining the RCEP — is expected to take a final decision only after the elections are held there in January 2024.
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