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There are several apprehensions in India regarding the proposed Regional Comprehensive Economic Partnership (RCEP). What are such apprehensions that make India cautious in these dealings?
1. For India, the RCEP deal carries huge import risk from China
2. RCEP proposes to include only manufactured goods and not services
Select the correct option from the codes given below:
1 Only
2 Only
Both 1 & 2
Neither 1 nor 2
1st statement is correct. 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).
RCEP carries with it the risk of dumping of cheap goods by China which could harm domestic Indian firms
BUt India could capitalise on the services part and until now the negotiations have indicated that RCEP wil include both goods as well as services
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