The Regional Comprehensive Economic Partnership (RCEP) pact-the world’s largest trade agreement, was signed by 15 nations on November 15, 2020 during 37th ASEAN virtual summit.
- The RCEP would cover 210 crore people, with the member states’ combined GDP of $26.2 trillion accounting for around 30% of the global GDP.
- Besides 10 ASEAN members, China, Japan, South Korea, Australia and New Zealand are also part of this mega trade deal.
- A minimum of six ASEAN countries in addition to three non-Asean partners must ratify RCEP for it to come into force.
- Some of the benefits of this trade deal are: a tariff elimination of at least 92% on traded goods among participating countries, stronger provisions to address non-tariff measures, and enhancements in areas such as online consumer and personal information protection, transparency and paperless trading.
- It also includes simplified customs procedures while at least 65% of services sectors will be fully open with increased foreign shareholding limits.
- On November 4, 2019, India had opted out from this trade deal. The deal would’ve allowed Chinese goods to flood Indian markets, threatening domestic industries. However, India can reapply for membership.
