Bangladesh’s Plan to join China-Backed RCEP Worries India

25 Dec 2023

Context: India to reconsider its proposed Free Trade Agreement talks with Bangladesh if it moves ahead with its plan to join the China-backed RCEP (Regional Comprehensive Economic Partnership) bloc.

Bangladesh decides to join China-Backed RCEP

  • Both Countries agreed to start negotiations on an India-Bangladesh Comprehensive Economic Partnership Agreement (CEPA)  in September 2022.
  • Bangladesh point of view: Bangladesh is pursuing free trade pacts to maintain preferential access to the  markets of its partner countries after it gains developing country status in 2026.
    •  As an LDC member of the South Asia Free Trade Agreement (SAFTA), Bangladesh enjoys duty-free quota-free access for most of its items into the Indian market, which it would lose after 2026.
About Free Trade Agreements or FTAs

  • FTAs  are treaties between two or more countries designed to reduce or eliminate certain barriers/ tariffs  to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.

About Comprehensive Economic Partnership Agreement or CEPA 

  • It encompasses a wide range of economic cooperation areas which include  services, investment, competition, intellectual property rights, and more, going beyond the scope of standard trade agreements or FTAs. 

 

Why is Bangladesh joining RCEP a concern for India?

  • Circumventing rules of origin ( ROO): The India-Bangladesh FTA could facilitate the flow of Chinese goods into India from Bangladesh through the FTA route, burdening Indian markets and affecting Indian industries.
    • India withdrew from RCEP negotiations precisely because of the concern surrounding the misuse of the ROO provisions. 
    • Rules of origin: It is a Rule or criteria which will be used to determine the national source of a product.

About RCEP

  • RCEP is a 15-member regional free trade agreement  between the Association of Southeast Asian Nations and ASEAN’s free trade agreement partners (Australia, China, Japan, New Zealand and the Republic of Korea.
  • India withdrew from RCEP negotiations in November 2019.
  • RCEP is the world’s largest free trade agreement by members’ GDP.
  • It is estimated that through its trade liberalizing provisions RCEP could lead to income gains of over $200 billion by 2030 and add $500 billion to world trade.

Also Read: China Celebrating 10th Anniversary Of Belt And Road

News source: the hindu

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 123
45678910
11121314151617
18192021222324
25262728293031

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

# #
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.