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Mega trade bloc RCEP takes off
Why is it in news?
- The Regional Comprehensive Economic Partnership (RCEP) came into operational existence on 14th
About RCEP:
- RCEP is a proposed Free Trade Agreement (FTA) between ten ASEAN member states and their six FTA partners namely India, Australia, China, Japan, New Zealand and South Korea.
- The grouping seeks regional economic integration which would result in largest trading block in world accounting nearly 45% of world population and a combined GDP of USD 21.3 trillion.
- Aims:
(1) Aimed at covering trade in goods and services, investment, technology transfer, economic co-operation, intellectual property rights etc.
(2) Seeks to boost goods trade by removing trade and non trade barriers
(3) Pitches forgreater liberalization in investment norms and doing away with services trade restrictions
- India didn’t join this group due to domestic reasons.
- India would have to write expressing “intention” to join the organisation to restart negotiations for membership.