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It's crucial for India to become part of RCEP: Commerce Secretary

25 Aug 2015 Evaluate

Commerce Secretary Rita Teaotia has said that three large pacts are being negotiated currently -- Regional Comprehensive Economic Partnership (RCEP) agreement, Trans Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (TTIP) -- and it is important for India to be part of at least one in order to step up India’s share of global trade and investment. 

She further stated that RCEP is one where India needs to be there. The group comprising of 16 members has 30% of world's trade. As a result, it is important for India to be part of this.  In November 2012, RCEP negotiations were launched in Phnom Penh. The 16 countries accounts for over a quarter of the world's economy, estimated to be more than $75 trillion. The 16-member bloc RCEP comprises 10 ASEAN members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six free trade agreement partners -- India, China, Japan, Korea, Australia and New Zealand.

It is under negotiations and is an extremely important institutional process which will have significant implications for India and other partners. Further, Teaotia has stated that there has been 'good discussions' in the RCEP and so far, nine rounds of negotiations have already been concluded.  On goods, she highlighted that “Largely, the discussions are done. There are some small hiccups to be sorted out, but I do not think that there are any major bottlenecks at this point of time. We should be able to overcome those.”  Besides, on services and investments, she added that 'We are now looking for the movement forward. Our interest is to build on our existing agreements with ASEAN, Japan and Korea for our benefit to widen our base for doing business.'

The aim of deal is to cover goods and services, investments, economic and technical cooperation, competition and intellectual property. Such trade agreements can help India to increase its share in the global trade -- India is aiming to increase its share from the current 2% to 3.5% by 2020.

TPP is a proposed trade agreement under negotiations among 12 countries - Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. TTIP is between the European Union and the US.

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