Reflections on RCEP and FTAs

In the process of evolving comparative advantage, some sectors will lose out. This, however, is not typical of FTAs but of all trade

India has decided not to join the 16-member Regional Comprehensive Economic Partnership because of concerns regarding sensitive sectors, the liberalisation of the services sector, mode 4 relating to movements of professionals, in particular, and the large trade deficit with China as well as with countries of the Association of Southeast Asian Nations (Asean). We are now thinking of negotiating free-trade agreements (FTAs) with other countries as well as undertaking a review of the India-Asean FTA. At this point it may be useful to reflect on some aspects of FTAs, in general, and the Regional Comprehensive Economic Partnership (RCEP), in particular.

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