{"id":7587,"date":"2020-01-05T05:19:44","date_gmt":"2020-01-05T05:19:44","guid":{"rendered":"http:\/\/calamur.org\/gargi\/?p=7587"},"modified":"2020-01-05T05:19:55","modified_gmt":"2020-01-05T05:19:55","slug":"cnbc-tv18-column-rcep-and-india","status":"publish","type":"post","link":"https:\/\/calamur.org\/gargi\/2020\/01\/05\/cnbc-tv18-column-rcep-and-india\/","title":{"rendered":"CNBC TV18 Column: RCEP and India"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">This piece on RCEP appeared on the <strong><a href=\"https:\/\/www.cnbctv18.com\/views\/its-better-to-begin-and-build-why-governments-should-look-at-rcep-as-a-beta-release-4619301.htm\">1st of November:<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Diwali day, <a href=\"https:\/\/www.telegraphindia.com\/india\/farm-free-trade-backlash-brews\/cid\/1714763\"><strong>farmer\ngroups in multiple states in India protested<\/strong><\/a> the RCEP (Regional\nComprehensive Economic Partnership) \u2013 a proposed free trade agreement between ASEAN-\nthat has 10 member countries &#8211; &nbsp;and a\ngroup of 6 other nations \u2013 China, Japan, India, Australia, New Zealand, and\nSouth Korea. These 16 countries account for almost half the world\u2019s population,\nand a third of its GDP. The RCEP, if it goes through, is expected to transform\ntrade in the entire geography, and improve growth. It is expected to create a\nsingle market, allowing goods and services to trade freely across borders,\nboosting choice, increasing consumption, and propelling prosperity across the 16\ncountries. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spearheaded by China, the RCEP,\nfirst proposed in 2011, is often seen as the Chinese response to the now\ndefunct, <a href=\"https:\/\/www.cfr.org\/backgrounder\/what-trans-pacific-partnership-tpp\"><strong>Trans\nPacific Partnership (TPP)<\/strong><\/a> put forth by the US and that promised to\ncreate a massive free trade zone. The United States, under President Trump,\nwithdrew from the TPP and has begun an onslaught against free trade, in\ngeneral, and trade with China in particular. The Chinese push to operationalize\nRCCEP should be seen in this context. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The deal if it comes through, it\nwill have a tremendous impact on free trade in goods, services, investments,\nand even Intellectual Property. At the very basic level RCEP hopes to start\nwith standardising tariff rates \u2013 the rate of tax on imports \u2013 across all member\ncountries. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Like all trade deals, there will be\nwinners and losers. In India the major impact will be felt by small industrial\nunits that manufacture lots of little things- plastic buckets, steel utensils,\nplug points, torches, clothing. Given rising labour costs in India and given\nthe economies of scale that China has achieved in manufacturing, this sector of\nsmall industries is likely to face the brunt of free trade. At the other end of\nthe spectrum, you will see the extremely strong services sector in India being\ngiven a fair playing ground in other countries. Indian Pharma may attract new\nmarkets, and cars and mobiles manufactured in India efficiently, can be sold across\nmarkets. We may see India become a hub for large manufacturing. &nbsp;If we look at the economy as a whole, it will\nbenefit. But there will be sectors that lose out. That is inevitable. The\ngovernment needs to look at how to mitigate this, while enabling those who\nbenefit from free trade to expand to maximum potential. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One area likely to be protected is\nagriculture. Even the European Community when it started, treated agriculture\nwith kid gloves. It protected agriculture then, it continues to protect\nagriculture now. <a href=\"https:\/\/www.theguardian.com\/world\/2003\/jun\/26\/eu.politics1\"><strong>The EU\u2019s Common\nAgricultural Policy (CAP)<\/strong> <\/a>&nbsp;has a\ntwin pronged goal, one is food security for all, the second is to ensure a\ndecent standard of living to families involved in agriculture. It has aid\nbillions in subsidies to achieve both. While farmers are protesting in India\nagainst RCEP, worried that cheap imports of cash crops,palm oil, coffee, tea, coconuts\nand other produce would destroy their livelihood, it is likely other countries\nare facing similar protests.&nbsp; And this\ncould see agriculture being kept out of the equation. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One big concern is the economic\ndisparity between the countries. Countries like Australia, New, Zealand Japan,\nSouth Korea, that have a high standard of living, and strict pollution controls\nwill compete against nations with lower standards of living, and little\npollution control. Environmental standards are not a part of this deal, nor are\nlabour rights. Therefore, countries that guarantee a fair standard of living\nfor its inhabitants \u2013 minimum wages, labour rights &#8211; may find themselves being\nless competitive than nations that have no such guarantees. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it is better to begin and\nbuild, rather than try to achieve everything from day one. Governments should\nlook at the RCEP as a beta release, continuously adding features and upgrading.\nIt is better to start small and build, than to get over ambitious and fall\nflat. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the clouds of trade war loom between\nthe United States of America, and China; and as Europe goes through its own\nuncertainties in the post Brexit era; the rest of the world is scrambling to\ncreate some form of insurance against the trade fall out of the biggest\neconomies pulling up their drawbridges. India has to choose, draw up the trade\nbarriers and go it alone, or become part of a larger alliance that grows\ntogether. The Indian government has to choose the latter. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>This piece on RCEP appeared on the 1st of November: On Diwali day, farmer groups in multiple states in India protested the RCEP (Regional Comprehensive Economic Partnership) \u2013 a proposed free trade agreement between ASEAN- that has 10 member countries &#8211; &nbsp;and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[10,15,23],"tags":[515,651,1605,1606],"class_list":["post-7587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-in-msm","category-economics","category-india","tag-economics","tag-global-trade","tag-trade","tag-trade-wars"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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