India has the trade deficit with 10 RCEP Members

In news:

India’s trade deficit with seven countries (Indonesia, Thailand, China, Japan, South Korea, Australia and New Zealand) of RCEP has in fact increased in 2017-18 as compared to the previous fiscal.

However, the trade gap has dipped with the remaining three nations – Lao, Brunei, Malaysia -in 2017-18.

What is India’s concern?

• The strength of the domestic manufacturing is weak, India would not be able to take advantage of such free trade agreements.
• Our exports to countries like Singapore, with which India has a trade surplus, is not increasing with the healthy pace.
• India does not have a free trade agreement with two of its biggest trading partners – the US and China – but the country has the highest positive balance of trade with the US, while it has the highest deficit with China.

Relative Information

Trade deficit

• The difference between imports and exports.

RCEP (Regional Comprehensive Economic Partnership)-

• RCEP aims at liberalising norms for trade in goods and services and boost investment among 16-member countries.
• The members comprise 10 ASEAN members and their six FTA partners – India, China, Japan, South Korea, Australia and New Zealand.
• RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia.
• RCEP is viewed as an alternative to the Trans-Pacific Partnership (TPP).

ASEAN

• Established in 1967 in Bangkok via Bangkok Declaration.
• Currently, there are 10-member states and 2 observer states are part of it.
• The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organisation comprising ten Southeast Asian stateswhich promotes intergovernmental cooperation and facilitates economic, political, military, educational and cultural integration amongst its members and Asian states.
• Its headquarter is in Jakarta, Indonesia.
• India is not the member of it.
• The 10-member states of ASEAN are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.

 

Source- Economic Times