UPSC Prelims 2016 Q77: Indian Economy – International Trade & WTO
The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the
context of the affairs of a group of countries known as
- (a) G20
- (b) ASEAN
- (c) SCO
- (d) SAARC
Answer: (b) ASEAN
Explanation
Regional Comprehensive Economic Partnership (RCEP)
RCEP is a free trade agreement built around ASEAN.
It links the 10 ASEAN members with their free trade partners.
| Year | Event |
|---|---|
| 2012 | Negotiations launched at the ASEAN summit in Phnom Penh |
| November 2019 | India opted out |
| November 2020 | Signed by 15 countries |
| January 2022 | Came into force |
Members:
| Group | Countries |
|---|---|
| ASEAN (10) | Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Brunei, Cambodia, Laos, Myanmar |
| Partners (5) | China, Japan, South Korea, Australia, New Zealand |
India stayed out over fears of cheap imports, mainly from China.
Answer: (b) ASEAN.
Why each option is right or wrong
- (a) Incorrect. The G20 is a forum of major economies and has no such trade pact.
- (b) CORRECT. RCEP is centred on ASEAN and its free trade partners.
- (c) Incorrect. The SCO is a Eurasian security grouping.
- (d) Incorrect. SAARC has SAFTA, not RCEP.
Key point
RCEP: ASEAN 10 + China, Japan, South Korea, Australia, New Zealand; signed 2020; India opted out in 2019.
Remember
RCEP = ASEAN-centred trade pact; India is out.
Common mistakes
- Thinking India is a member; it withdrew in 2019.
- Confusing RCEP (with China) and the TPP (without China).
- Forgetting that RCEP began as an ASEAN initiative.
Exam tip
RCEP = ASEAN plus five. India was the sixth partner but left.
Sources
- ASEAN Secretariat — Regional Comprehensive Economic Partnership
- Ministry of External Affairs — Statement on India's decision on RCEP (4 November 2019)