- RCEP is a major economic deal between ASEAN members and FTA partners.
- It is the world’s largest trading bloc that promotes economic integration, trade liberalization, and cooperation.
- The agreement was officially signed in November 2020 and entered into force on January 1, 2022.
- It consists of 15 member states and covers trade in goods, services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, and SMEs.
- Objectives
- facilitate trade and investment, reduce tariffs, and enhance economic cooperation.
- The benefits of RCEP are economic growth, regional stability, simplification of trade procedures, foreign investment attraction, and competitiveness and innovation.
- RCEP covers one-third of the world’s population. It can potentially impact global trade.
- India is a founding member of RCEP and withdrew from negotiations in 2019 over concerns for its domestic economy.
