The Prime Minister of India, Narendra Modi, stated his concern that India could not compete in its home. (Image via The Hindu)

World’s most lucrative deal delayed to 2020

Alfonsus Adi Putra
Politics & Economic
International
Nov 04, 2019
2126
The signing of the Regional Comprehensive Economic Partnership (RCEP) will have to wait until 2020. During the 35th Association of Southeast Asian Nations (ASEAN) Summit in Bangkok, Thailand, the RCEP trade deal, involving around 16 nations in the agreement, should have been finalized and signed by last weekend.

The deal spans from India to New Zealand including China, Japan, and South Korea; and, RCEP will cover almost half of the world’s population which means around 30% of global GDP.

The draft, consisting of 20 chapters of RCEP, had been completed. However, it is still waiting for one nation, believed to be India. Represented by its Prime Minister, Narendra Modi, India on Sunday stated its concern to the deal. One of its concerns is the “meaningful market access to all parties”. Modi worries that the Indian market will be filled with cheap goods from China.

In a draft agreement, it is stated that the deadline for all negotiations will be no later than February 2020. All members had signed their commitment to sign the RCEP deal by next year in Vietnam, hosting the next ASEAN summit.

The RCEP deal seems like a remedy for China who has been suffering in the trade war against the United States (U.S). China sees RCEP deal as a strong foundation for its trading strategy in ASEAN regions, having been backed up by ASEAN leaders representing 650 million prospective markets.

Source: https://bit.ly/36u6EWK