The RCEP is the world's largest trade bloc backed by China and groups 15 Asia-Pacific economies, including Australia, Japan, New Zealand and 10 member-states of the Association of Southeast Asian Nations (ASEAN). (File)
PREMIUM
As several economists have argued, India cannot expect to become a key node in global supply chains unless it opens its doors for trade (Shutterstock)
A policy announcement made by Chinese President Xi Jinping earlier this month suggests that the opening of its market to RCEP members is part of its larger strategy
External affairs minister S Jaishankar in New Delhi. It is somewhat paradoxical that a minister in what can be termed a government that leans towards the Right has articulated a position that resembles that of the Left. Ever since India opened up, it was the economists on the Left who warned against its implications on domestic capital and labour.
This is often because it is torn between its own ideological moorings and tactical considerations — in the process, it may neither remain true to itself nor be able to win over voters
New Zealand's Prime Minister Jacinda Ardern, India's Prime Minister Narendra Modi, Chinese Premier Li Keqiang and Thai Prime Minister Prayuth Chan-Ocha shake hands at the 3rd Regional Comprehensive Economic Partnership (RCEP) summit in Bangkok, Thailand, November 4, 2019
The possible benefits include a potential entry into global supply chains, making manufacturing in India attractive for both domestic and foreign companies, and increased foreign direct investment flows.
Jaishankar said India fears that the RECP deal, which would call for a lowering of tariffs, would lead to a flood of goods from China while not assuring India of an equal access to the Chinese markets.
Prime Minister Narendra Modi on Wednesday highlighted the need for an early conclusion of the Regional Comprehensive Economic Partnership (RCEP) agreement through multilateral and bilateral talks among the member countries.
Prime Minister Narendra Modi with his Japanese counterpart Shinzo Abe during the Regional Comprehensive Economic Partnership leaders’ meeting, in Manila.
