The Regional Comprehensive Economic Association (RCEP), a mega trading bloc comprising 15 countries led by China and that came into existence on Sunday, said India would have to write expressing its “intention” to join the organization. to restart membership negotiations. In a statement released after the initialization ceremony among member countries on the sidelines of the 37th ASEAN Summit held virtually, the newly formed organization has set the path to restart the discussion that had previously not admitted India and said “new “Developments would be taken into consideration when India reapplied.
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“RCEP signatory states will begin negotiations with India at any time after the signing of the RCEP Agreement once India submits a written request of its intention to adhere to the RCEP Agreement to the RCEP Agreement depositary, taking into account the latest status of India’s participation in the RCEP negotiations and any subsequent new developments, ”stated the RCEP, which is made up of the 10 ASEAN members and Australia, China, Japan, South Korea and New Zealand . The China-backed group is expected to account for at least 30% of global GDP and emerge as the world’s largest free trade agreement.
Modi’s silence
The trade megablock is a historic trade initiative that is expected to boost trade between member countries spread across the Asia-Pacific region. Prime Minister Narendra Modi addressed the ASEAN summit on November 12 and highlighted the need for peace and stability in the region, but remained silent on the RCEP, indicating India’s difficulty in welcoming the the Chinese-backed grouping. India’s ties with China in recent months have been disrupted by military tension in eastern Ladakh throughout LAC. Meanwhile, India has also conducted maritime exercises with Japan, Australia and the United States for the “Quad” which was interpreted as an anti-China movement. However, these movements did not influence the Japanese and Australian plans regarding RCEP. Experts interpret the beginning of the RCEP as a major development that will help China and trade in the Asia-Pacific region in the post-COVID-19 scenario.
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‘Leverage for China’
“The agreement means a lot to China as it will give it access to the markets of Japan and South Korea in a big way, as the three countries have not yet agreed to their FTA,” said Amitendu Palit, principal investigator and research leader ( Trade and Economics), at the Institute for South Asian Studies, National University of Singapore. “The fact that this has happened, despite the pandemic, is certainly an advantage for China and shows that the idea of disengaging from China is not a substantial problem in a regional sense.”
India had ended negotiations on RCEP last November on terms that were perceived to be contrary to its interests. In May, The Hindu had reported that, according to senior official sources, concerns regarding China on the post-coronavirus world stage had prevented Delhi from restarting negotiations to become a member of RCEP. India did not return to the negotiation despite the request of RCEP members who have discussed the trade pact for almost eight years.
Also read: India exits RCEP, says trade deal hurts Indian farmers
south china sea
The concerns regarding China were reflected in the statements by Foreign Minister S. Jaishankar, who stood firm on India’s well-known position on the South China Sea. In his remarks at the ministerial-level discussion at the XV East Asia Summit (EAS), Mr. Jaishankar indirectly referred to China, saying that “actions and incidents” in the important maritime region eroded trust and suggested the need for stick to the rules. international based system. He also maintained the need to “respect territorial integrity and sovereignty,” an obvious reference to the tension in LAC and Chinese activities in Pakistani-occupied Kashmir.
It is understood that staying outside the RCEP may interfere with India’s bilateral trade with RCEP member countries.
(With input from Ananth Krishnan)
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