India’s stand on RCEP depends on US outlook towards China

By Aarti Tikoo Singh New Delhi, Nov 16 : Even as the 10-member ASEAN bloc has signed the Regional Comprehensive Economic Partnership (RCEP) with five economies led by China, India is going to follow the policy of wait and watch till the new US presidency assumes office.
After eight years of hard negotiations, ASEAN (comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) signed the trade pact with five of its FTA partners — China, Japan, South Korea, Australia and New Zealand — on Sunday.
The pact aims to reduce cost and time for traders of all the member states by lowering tariffs and waiving off requirements to export their products in a hassle-free manner anywhere within the bloc. RCEP’s members account for around 30 per cent of global GDP. The agreement is likely to come into effect next year.
India was to be a member too but it withdrew in November last year after RCEP did not address satisfactorily its outstanding issues. Although India can join the RCEP in future, but so far the government is not rethinking its decision, sources told IANS.
“The Centre will wait and watch the new US presidency’s approach towards China,” a source said.
The Congress-led opposition has been critical of the Modi government’s backing out from the largest trading arrangement in the Asia-Pacific region. In a couple of tweets, former Finance Minister P. Chidambaram had said that there are pros and cons to India joining RCEP.