SITREP: 2022 High-level Forum for RCEP Economic and Trade Cooperation

By IndraStra Global News Team

Image Attribute: UN Resident Coordinator Siddharth Chatterjee at High-level Forum for RCEP Economic & Trade Cooperation / Source: United Nations in China
Image Attribute: UN Resident Coordinator Siddharth Chatterjee at High-level Forum for RCEP Economic & Trade Cooperation / Source: United Nations in China

On July 28, the 2022 High-Level Forum for RCEP Regional Economic and Trade Cooperation with the theme of "New Opportunities, New Patterns, and New Voyages" was successfully held in Qingdao, Shandong Province of China. More than 300 officials and representatives have joined the forum both online and in person to discuss the further implementation of the RCEP.

Map Attribute: RCEP Member Countries

Map Attribute: RCEP Member Countries

RCEP is the world's largest free trade agreement between  10 ASEAN countries — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam — and their five major trading partners — Australia, China, Japan, New Zealand, and South Korea. 

RCEP, which has been in the making for more than a decade, will eliminate tariffs on 91% of imports and introduce regulations on investment and intellectual property to support free trade. One of the most key aspects of RCEP is that the manufacturing can involve multiple member nations under the same trade agreement.


Video Attribute: Resident Coordinator Siddharth Chatterjee at High-level Forum for RCEP Economic & Trade Cooperation / Source: United Nations in China's Official Youtube Channel

According to World Bank data, RCEP will include 2.3 billion people, US$ 25.8 trillion in global GDP, US$ 12.7 trillion in international commerce in goods and services, and 31% of global FDI inflows. As global economic power transfers to the Asia-Pacific region, RCEP spillover effects have the potential to benefit both participating and non-participating countries.

RCEP Shandong Enterprise Service Center

Image Attribute: RCEP Shandong Enterprise Service Center / Source: Stadt Qingdao

Reasons Behind India's Exit from RCEP


India withdrew from the agreement in November 2019, partly because of worries regarding the dumping of manufactured goods from China and agricultural and dairy products from Australia and New Zealand, which could hurt its own industrial and farming sectors. Also, in the absence of rules of origin — the criteria used to determine the national source of a product — it was feared that certain member nations could dump their goods by routing them through countries with lower tariffs. 

India recommended a three-tiered tariff reduction strategy to the member nations in order to protect its domestic manufacturing sector. First, it planned to lower duties on 80 percent of tariff lines with ASEAN, 65 percent with Japan and South Korea, and 42.5 percent with China, Australia, and New Zealand, which did not have an existing trade agreement with India. However, the RCEP member countries demanded a higher decrease in tariff lines, aiming for a 90 percent drop, and India's proposal was eventually ignored.

Besides that, there are other geopolitical conditions that led India to shift from RCEP to US-led  Indo-Pacific Economic Framework (IPEF).



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IndraStra Global: SITREP: 2022 High-level Forum for RCEP Economic and Trade Cooperation
SITREP: 2022 High-level Forum for RCEP Economic and Trade Cooperation
By IndraStra Global News Team
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