Bookmark Bookmark

India refused to join RCEPs agreement

India refused to join RCEPs agreement 

India has denied joining the mega Regional Comprehensive Economic Partnership (RCEP) agreement as RCEP failed to address the negotiations raised by India. 

India to not join RCEP Agreement:

  • Despite the concerns, India raised a red flag over the move to use 2014 as the base year for tariff reduction. 
  • RCEP negotiators are to sign the deal in 2020. The new tariff regime by RCEP will be in practice from 2022, and the duties will be of 2014 levels. 
  • RCEP Agreement does not reflect the basic spirit of India and the agreed guiding principles of RCEP. 
  • It does not address India's outstanding issues and concerns satisfactorily. Hence, it is not possible for India to join the RCEP Agreement. 

Key Points: 

  • India raised concerns which include the threat of circumvention of Rules of Origin due to tariff differential. It failed to address the issues of trade deficits and the opening of services. 
  • Indian also questioned the design of the trade agreement along with the previous services and investment rules. The plan will see the elimination of import duties on 80-90% of goods.
  •  The biggest concern of India is goods trade. The domestic industries of India feared that the lower customs duty would see a flood of imports, especially from China, with which India has a massive trade deficit. 
  • India has also raised regarding the issue of unavailability of Most Favoured Nation (MFN) obligations with which it would be forced to give similar benefits to RCEP countries that it gave to others. 


It aims to create the biggest free-trade region in the world. The RCEP comprises 10 Asean nations and six of its free trade agreement (FTA) partners, namely India, China, Japan, South Korea, Australia, and New Zealand.

You might be interested:

Wastelands Atlas 2019

Wastelands Atlas 2019 Narendra Singh Tomar, the Union Minister for Rural Development, Agriculture and Farmers Welfare, and Panchayati Raj released the Wastelands Atlas 2019. The Atlas aims to show the ...

8 months ago

Aditya Mishra appointed as the chairman of the Land Ports Authority of India

Aditya Mishra appointed as the chairman of the Land Ports Authority of India  Senior IPS officer Aditya Mishra appointed as the chairman of the Land Ports Authority of India (LPAI). The appointme ...

8 months ago

6th Parliamentary Speakers’ Summit of the G20 Countries

6th Parliamentary Speakers’ Summit of the G20 Countries An Indian parliamentary delegation which is led by the Lok Sabha Speaker Om Birla is taking part in the 6th Parliamentary Speakers’ ...

8 months ago

One Liners of the Day, 06 November 2019

Important Day World Tsunami Awareness Day - 5 November. Defence A naval exercise between the US and Bangladesh which began in Chattogram (Bangladesh) on 4 November - ‘Cooperation Afloat Readi ...

8 months ago

Daily News Digest:05 November 2019

New IT initiatives called ICEDASH and AtithiFinance Minister Nirmala Sitharaman on 4th November 2019 unveiled two new IT initiatives, Atithi and ICEDASH, to improve monitoring and pace of customs clea ...

8 months ago

CARAT- 2019

CARAT- 2019 The biggest US- Bangladesh Navy exercise ‘Cooperation Afloat Readiness and Training (CARAT) – 2019’ is being held in Chattogram (Chittagong City) in Bangladesh. The CARAT ...

8 months ago

Provide your feedback on this article: