IASbhai Daily Editorial Hunt | 18th Nov 2020
“What we fear doing most is usually what we most need to do.” – Tim Ferriss
Dear AspirantsIASbhai Editorial Hunt is an initiative to dilute major Editorials of leading Newspapers in India which are most relevant to UPSC preparation –‘THE HINDU, LIVEMINT , INDIAN EXPRESS’ and help millions of readers who find difficulty in answer writing and making notes everyday. Here we choose two editorials on daily basis and analyse them with respect to UPSC MAINS 2020-21.
EDITORIAL HUNT #248 :“RCEP – Strategic Importance in 2020 | UPSC”
M. Suresh Babu
RCEP – Strategic Importance in 2020 | UPSC
M. Suresh Babu is Professor of Economics at IIT, Madras
HEADLINES:
Shifting sands for Asian economies
CENTRAL THEME:
India faces an uphill task in maintaining its viability against highly competitive countries
SYLLABUS COVERED: GS 3 : Trade
MAINS QUESTION:
Recalibrated policies must focus on making exporting activity favourable for all firms.India needs a well calibrated policy to balance out giant economic trade deal RCEP.Comment -(GS 3)
LEARNING:
- Chinese Manufacturing Base
- Challenges
- Asian Trade Structure
- A new approach to trade
INTRODUCTION:
- BACK DOORS : Even as India opted to stay out after walking out of discussions last year, the new trading bloc has made it clear that the door will remain open for India to return to the negotiating table.
- RCEP DEAL : Described as the “largest” regional trading agreement to this day.
- MEMBER NATIONS : RCEP was originally being negotiated between 16 countries — ASEAN members and countries with which they have free trade agreements (FTAs), namely Australia, China, Korea, Japan, New Zealand and India.
- NEGOTIATIONS : Negotiations to chart out this deal had been on since 2013, and India was expected to be a signatory until its decision last November.
BODY:
IASbhai Windup:
A NEW APPROACH
TRADE DEALS
- Two reviews of the India-Singapore CECA have been completed.
- The India-Bhutan Agreement on Trade Commerce and Transit was renewed in 2016.
- Eight rounds of negotiations have been completed for the review of the India-Korea CEPA, which began in 2016.
- India has taken up the review of the India-Japan CEPA and India-ASEAN FTA with its trading partners
THE ALTERNATIVES
- ALTERNATIVES : The possible alternative that India may be exploring is reviews of its existing bilateral FTAs with some of these RCEP members.
- NEW PACTS : The newer agreements with other markets with potential for Indian exports.Over 20 negotiations are underway.
- ART OF NEGOTIATION : India is also negotiating agreements with members like Australia and New Zealand.
The post-pandemic global economy have often predicted that China’s appeal as a business destination would fade, losing favour as the global manufacturing hub.
SOURCES: THE HINDU EDITORIAL HUNT | RCEP – Strategic Importance in 2020 | UPSC

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