Mega Trade Deal
04, Sep 2018
Prelims level : Mains level :
- The Trade Minister’s of 16 nation’s express their satisfaction of the substantial conclusion of the negotiations by end of this year.
- RECP aims to cover goods, services, investments , economic and technical co-operation, Competition and intellectual property rights
It is a proposed free trade agreement between 10 member states of ASEAN
- The Philippines
And 6 Asia pacific states
- South Korea
- New Zealand
If Successfully implemented its going to be the world’s largest economic bloc, covering nearly half of the global economy It nearly cover’s 45% of the world’s Population.
There have been criticism from various corners that global health care activists have criticised the agreement for forcing India to end its cheap supply of generic medicines and does not adequately protect IPR.
- Most of the countries are sceptical about opening market for services as skilled / STEM labour’s from china and India will dominate.
- China is not willing to open up its goods market as it has major trade deficit with south Korea 44 Billion a huge amount.
- India has enormous amount of Trade Deficit with RCEP block especially china, Japan, South Korea, Australia.
- Steel and other products can be dumped by china.
- Simplifying customs procedure is again complex.
- In the 23rd conference Indonesia and Australia tried to coerce India to join the RCEP.
- Opening up of service market will benefit India’s skilled professionals and STEM worker’s.
- The Products like Pharmaceutical’s will invade the markets of ASEAN countries there by earning more forex reserves.
- The Ongoing progress faces setback due to India’s concern.
- For India the limitation will out weight the advantage so any decision require contemplation.