Regional Comprehensive Economic Partnership

What is RCEP? What are the issues in the context of India and suggest measures? Comment

Model Answer:

Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing free trade agreements (Australia, China, India, Japan, South Korea and New Zealand).

1) E- commerce: Placing great limitation on digital policy making by any country in the name of promoting E-commerce.

Problems for India:

• India is still stuck in the IT realities of yesterday.
• India is on a threshold of a digital society.

2) Intellectual property: Monopolies are adopted at this meeting , the repercussion may be permanently damaging for people’s access to affordable medicines like in generic drugs by India.
3) Data exclusivity:Japan and korea demanding the period of no less than 5 years .Data exclusivity creates a barrier to entry for generic producers .India has purposely not adopted it .
4) Procurement policy:pressure to free procurement policy to unlock over 300 billion dollar market by other countries to India. India is not a signatory to the govt procurement agreement within the WTO framework because it wants to retain its policy space to meet its development need through public procurement process.
5) On tariff liberalization:China wants hive level of elimination of duties under it that will lead to surge of Chinese products in the market.

Suggestion:

1) A well articulated and diplomatic policy needed.
2) Need of the understanding of current global situation in the context of domestic growth.