Trade and Economic Policy: RCEP Under Scrutiny by GTRI
Trade Implications of the RCEP
The Global Trade Research Initiative (GTRI) criticized the World Bank’s recommendation for India to reconsider its stance on the Regional Comprehensive Economic Partnership (RCEP). GTRI argues that the World Bank's advice, based on flawed assumptions about trade and supply chains, fails to reflect the ground realities faced by developing nations like India.
Flawed Assumptions
- GTRI questions the data backing the World Bank’s claims.
- Reliance on China-centric supply chains remains a significant concern.
- India's high trade deficit with China exceeded US$ 85 billion in FY24.
RCEP Risks and Strategic Decisions
India's absence from the RCEP has proven strategic. GTRI indicates that earlier apprehensions have only grown with evolving economic scenarios post-2019 when India exited due to unmet trade concerns. The bloc's configuration includes 10 ASEAN members and their six FTA partners, raising alarms over possible excessive trade deficits.
Global Supply Chain Dynamics
The ongoing global transition to
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.