By the end of the year, the world’s largest trading group can come into being. On Sunday, the business ministers of Asian countries made one more step in this direction. It is believed that there can be a consensus on the free trade agreement in the next few months. As Regional Comprehensive Economic Partnership (RCEP), Ministers of 16 countries met in Tokyo on Sunday and efforts were made to overcome mutual differences. The special thing is that this group includes India, China, Japan while the US is not.
According to Bloomberg’s report, Japan’s trade minister Hiroshige Sekō said during the joint press conference, “The way for the Agreements has now become completely clear. As protectionism is growing in the world, it has become important for the Asian region to go ahead with the free trade. ”
Apart from ASEAN’s 10 member countries, this partnership also includes South Korea, Australia and New Zealand. The point of note is that this partnership covers nearly half the population of one-third of the world’s economy. By the way, it is unlikely that this packet will implement high standards in areas such as labor and environmental protection like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership of 11 countries made earlier this year.
At present, efforts are on to create consensus among the countries. One of the biggest obstacles is the need of India, which is being demanded that people should be allowed to have free movement without any agreement to reduce tariffs on Goods and Services.
Indeed, India wants such a free movement for its highly skilled IT sector. Singapore Trade Minister Chan Chung Singh said on Sunday, “There are big challenges for the global trading system at the moment. This inspires us to try to reach the RCEP process to the conclusion. ‘
Trade war between the US and China is on. In this way, moving forward on RCEP can increase the pressure of joining Trans Pacific Partnership (TPP) on the US. Meanwhile, the tariff imposed on Chinese goods by U.S. President Donald Trump is to be effective from July 6 and China has said that it will take strong measures against it.