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
