India opts out of world’s largest trading bloc RCEP in pursuance of Self- Reliance
As 15 countries sign the Regional Comprehensive Economic Partnership or RECP free trade agreement after 8 years of rigorous negotiations , India walks away from it, towards its vision of Aatmanirbhar Bharat. The agreement encompasses Australia, Japan, China, New Zealand and South Korea along with the ten countries of Association of Southeast Asian Nations.
In what could be seen as one of the largest regional free trade agreements in the world which will cover about 30 percent of global GDP and almost one third of population, approx 2.2 billion people, China will be calling the shots again. Chapters on trade in the agreement note that members will work towards gradually bring down the import duties on many goods trascated in the region.
Asserting on the effect of globalisation External Affairs Minister S. Jaishankar remarked, “India has allowed other countries “unfair” trade and manufacturing advantages in the name of openness, and consequences past trade agreements has forced India to deindustrialise.”
India has made its decision despite the suggestions made by many RCEP signatories to reconsider, to safeguard the interests of domestic manufacturing clusters particularly those linked with labour intensive sectors which have long been impacted in the past owing to unfair trade practices of some countries.
“The damaging consequences of previous free trade agreements has led to trade deficits, manufacturing cuts, job losses and to “becoming over-dependent on imports, ” added Minister of External Affairs.
