RCEP(The Regional Comprehensive Economic Partnership) is a free trade agreement between 16 member countries.

What does a free trade means?

A free trade is a trade in which these countries will trade without any tariff on their goods.

What are the benefits?

One can sell their products without any additional tariff. That means their prices gets competitive. So sale will be high.

Why didn’t India sign?

India is a country where we mainly trade IT(Information Technology) which is not playing a notable role in this agreement. On the other hand 40% of our trades are with this 15 countries. Which means they are getting benefitted more than us.

What do we lose if we sign?

Their farm goods and electronics will occupy the Indian market. Which will eventually let our producers to lose.

What India wants to sign the agreement?

India wants the agreement to be mutually beneficial. So, India is willing to set limits on free trade and after which the tariffs kicks in. By this way it will be beneficial for India and others too.

To conclude RCEP is a big deal. The decision taken for now is good for our own manufacturers and farmers. Thumbs up to the government for the decision.

– Thiru