dfa-17-nov

Daily Financial News Analysis – 17th Nov’20 – Free PDF Download

RCEP

  • The world’s largest trade bloc emerged on Sunday
  • RCEP backed by China, accounts for 29% of global economy in terms of its size.
  • Combined GDP size = $26.2 trillion (1/3rd of world’s total)
  • RCEP over-shadows arrangement in Europe and North America

 

Prime concerns of India

  • Chinese goods flooding the country
  • Misuse of simplified country of origin rules
  • Lack of mechanism to prevent dumping of industrial products by China, Japan and South Korea
  • Lack of mechanism to prevent dumping of agricultural and dairy products from Australia and New Zealand
  • There was no assurance to India about opening up services sector and easy movement of Indian personnel

RCEP is nothing but ASEAN + 5

  • Southeast Asian nations already have a FTA
  • It is win-win for all 15 nations
  • China, Japan and SK can compete to sell products
  • The current level of industrialization in India is not capable enough to handle such giants.
  • India is an attractive investment destination for export-focused companies.
  • We need to make out industry as competitive like China, Japan and SK

Joe Biden

  • New President will face a more complex scenario in Indo-Pacific region
  • Defeating Covid-19 pandemic is going to be 1st priority
  • American economy has shrunk by over -4%
  • Britain’s economy has shrunk by over -10%
  • Canada and Japan are also in red
  • 2 of the QUAD players have signed RCEP
  • Supply Chain Resilience Initiative (SCRI) now appears a non-starter.
  • Comprehensive and Progressive Trans Pacific Partnership
  • Healing rifts with nations like Germany and France can also be 1st priority of USA

 

 

 

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