RCEP as winning strategy: Why India must bring ongoing trade pact negotiations to a speedy conclusion
Abstract:
The multilateral trade regime which saw trade flourish for seventy years following the Second World War faces an existential threat today. A trade war has broken out between the two largest economies, the United States and China. From being the principal architect of the system, the US has come to view itself a victim of it.
Therefore, in the medium run, we are likely to be left with regional trade agreements as the only game in town. This fact makes a successful conclusion of the Regional Comprehensive Economic Partnership (RCEP) agreement among its sixteen partner countries critically important. For reasons I explain below, India has much to gain from the agreement.
India is often criticised, even vilified, for its tough stance in trade negotiations. But all major nations with bargaining power negotiate hard to maximise access for their exports in return for the access they give to imports in their markets. The criticisms must therefore be heavily discounted.