InvestorQ : What exactly is RCEP and why is it important for Asia and the world trade?
Mary Joseph made post

What exactly is RCEP and why is it important for Asia and the world trade?

Answer
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sara Kunju answered.
11 months ago


The Regional Comprehensive Economic Partnership was supposed to be the biggest free trade agreement with 40 per cent of global commerce and 35 per cent GDP. While India backed out of the RCEP agreement in the last minute at Bangkok, the other 15 countries decided to go ahead. India saw that as a clear bid by China to isolate India. The 16 members of RCEP negotiations including the 10 ASEAN members plus Australia, China, India, Japan, New Zealand and South Korea. While the other countries have signed the pact at the insistence of China, the deal may lose some of its sheen in the absence of India.

Had India been a part of the RCEP agreement, then 3.6 billion people or half the population of the world would have been covered by RCEP. Without India, that gets reduced to around 2.3 billion people. Although it is still a large trade body, it is likely to be largely dominated by China and also the RCEP does not get any access to the lucrative Indian market.


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11 months ago


It's a free trade agreement between Asian counties much like what exists under the EU. It can be seen as a means to facilitate easy trade within the group.