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India: exit RCEP at last minute

2019/11/19

The third regional comprehensive economic partnership (RCEP) leaders' meeting was held in Bangkok, Thailand, on November 4. Leaders at the meeting issued a joint statement after the meeting, announcing that all text negotiations and virtually all market access negotiations of the 15 RCEP member states have ended, and will work to ensure that an agreement is signed next year. At the same time, the statement said, "India has important issues that have not been resolved India's final decision will depend on the successful resolution of these issues. ".


Indian media quickly released the report "India decided not to join RCEP" on the evening of the 4th. Indian Prime Minister modi said India decided not to join RCEP due to tariff differences, trade deficits with other countries and barriers unrelated to tariffs, the times of India and other media said. People familiar with the matter said that India is worried that once the accession causes a large number of low-priced foreign goods to flow into the Indian market and impact on its industry, modi government is under greater pressure from related industries in China.


RCEP, initiated by 10 ASEAN countries, invited 6 dialogue partners, including China, Japan, South Korea, Australia, New Zealand and India, aiming to establish a 16 country unified market free trade agreement by reducing tariff and non-tariff barriers. The agreement will cover about half of the world's population, with GDP accounting for 32.2% of the world's total and trade accounting for 29.1% of the world's total. After reaching the agreement, it will become the most populous and potential regional free trade agreement in the world.


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