Regional Comprehensive Economic Partnership (RCEP)

Read the passage and then, answer the questions that follow: 

 Introduction 

Regional Comprehensive Economic Partnership (RCEP) is a free - trade organisation comprising of the ASEAN Members and China, Australia, New Zealand, South Korea and Japan. It was established in 1967 and its headquarters are located in Jakarta, Indonesia.
Over this article I will apprise you of the Previous Developments in the Creation of RCEP, the Reasons for the Exit of India and the Way Forward. Thereby, we will understand the Larger Picture and decode a Pragmatic Solution.

Previous Developments

The series of events started in the 2011 ASEAN Summit in Indonesia, when the idea for the creation of a socio - economic - political organisation to promote free trade was floated. The First Round of Negotiations started in 2013. India played an active role in these negotiations that continued till 2019. But, on 4 November, 2019, it was announced that India will not join the RCEP citing the advantageous position enjoyed by China in the deal.

Reasons for India's Exit:

 The Chinese Factor

According to Wikipedia, Dumping occurs when one country, i.e. the exporter, in order to increase the market share in a foreign market by driving out competition, exports its goods to another country at a price below the Market price. This is seen to have an injuring effect on the Importing Country and often leads to the creation of a monopoly situation where the exporter will be able to unilaterally dictate price and quality of the product.
Facts and figures show that China has been dumping its goods into India for years. At Present, there is a 54 Billion Dollar Trade Deficit with China.

The Make in India Scheme

To stop the Indian Manufacturers from suffering the harsh impact of the demeaning policies of China, the Indian Government came up with the Make in India Scheme which aimed at making India self - reliant and transforming India into a Global Manufacturing Hub. To encourage local manufacturing and achieve the purpose of this Scheme, the Government even increased the import duty.
The objective of the Free - Trade Organisation, that is, unhindered movement of goods and services across the member states, is contrary to the Agenda of the Make In India Scheme, which the Government has been propogating for years. If the government would have given in and accepted its position as a member of this organisation, it would have had to abandon its agenda of Self - Sufficiency, thereby leading to the Chinese goods flooding into the country. This would have directly hurt the sentiments of Manufacturers, and would have negatively affected the domestic industry. It would have meant that we, as Indians, lost the Trade Battle against China and were unable to stand against its growing Influence. As a Result, India's image as a rising voice against Chinese ill - motives, would be discarded from the Global Perspective.
The Border CrisisIndia already has bilateral Free Trade Agreements with all the members of RCEP, excluding China. Thereby, it would not have any difference on India's trade with any country even if India joins RCEP with China being an exception. We can't possess double standards, on one hand our soldiers fighting at the Border against Chinese interventions and on the other hand, India entering into a free - trade agreement with the country, as highlighted by External Affairs Minister Dr. S Jaishankar.

The Balance of Payment

Another factor leading to India's exit, could be trade deficits with most of the Member Nations of RCEP. This trade deficit amounts to 105 Billion Dollars at Present. Australia and New Zealand produce cheap and good quality dairy products. Thailand, Vietnam, Indonesia, Malaysia and Cambodia are some off the World's finest Agriculture Producers. These good when flood into the Market, will  hurt Indian farmers and local dairy producers. Entering this Organisation will mean more goods being flooded into India, and as a result, this Trade Deficit increasing further.

The Way Forward and The Larger Picture

The stark reality is that India will have to join the RCEP, if not at the present, then in the future to stop the growing Chinese influence over the 15 Member Organisation. India should take its time, and do its preparations before demanding for a place as the Member Nations. These will include, strengthening the local manufacturers as to compete with the International Companies, Bolstering the Economy, introducing plans to monitor Balance of Payment with China among other.
While, during the negotiations from 2013 - 19, India and China were at the same pedestal, negotiating for their own interests, this time the Situation will be far more burdensome for India. This time, China will be existing as an established member of the organisation, and will exploit all the possible ways through which it can gain an advantage over India.
With the beginning of 2020, when Nations realized the growing influence of China in and around the Indo - Pacific Region, they wanted to counter this rising Power. In such a scenario, when China was being negatively criticised across the World, India emerged, posing an unshaken challenge to China's unfair policies. In order to hold on to the confidence of the World as an emerging fighter against the unjust Superpower, India will have to take all the necessary steps to reduce Chinese influence in the Free - Trade Organisation and establish its position as a Member - Nation. This is the demanding test of India through Decades, where China stands high, not letting anyone stop it from furthering its claims and the other countries, being mere spectators in this Indo - China Tussle. The Road to RCEP goes through the China Factor. Will India succeed in its aims is something that only time will determine.
Taken with edits from: https://opinethecurrent.blogspot.com/2021/06/indias-exit-from-rcep-strategic-blunder.html