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    The Dispute Between India And China Has Delayed The Progress Of RCEP Negotiations.

    2019/9/23 16:45:00 1

    DisputeNegotiationProgress

    The dispute between India and China, which is the two most populous country in the world, delays the progress of the Pan Asian trade agreement regional comprehensive economic partnership agreement (RCEP), which covers nearly one third of the world's trade volume.

    After 10 years of negotiations, the ministers from the 6 ASEAN countries and 6 dialogue partners reached a "critical milestone" and vowed to complete the negotiations at the regional summit meeting held in November (2019). However, officials involved in the negotiations believe that there are still major differences between market entry and mode four (natural person mobile).

    According to an unnamed negotiator, the tension is mainly due to the number of preferential tariffs between India and China. The person also said that India was also dissatisfied with the status of Southeast Asian countries in the free flow of professionals, especially in the IT industry, and is considering whether to include it as part of the negotiations.

    RCEP, which covers nearly half of the world's population, was declared "the largest regional free trade agreement" in 2012 when negotiations were launched. Shortly after 2016, President trump announced that the United States decided to work out the trans Pacific Partnership Agreement (TPP), prompting Chinese President Xi Jinping to speed up the RCEP negotiation process to consolidate China's influence. But negotiators have been unable to reach an agreement on a deadline. The main reason is that India's prime minister Modi is worried about increasing trade deficit with China. Other Asian countries are reluctant to accept a large number of India workers in exchange for greater market access.

    Yao Jinlong (Yeah Kim Leng), Professor of economics at Sunway University, Malaysia, is not optimistic about RCEP, mainly due to differences among member countries, especially how they see how RCEP benefits the economy and the challenges it brings. The biggest question now is whether they are willing to continue without India's participation, which may cause opposition from New Zealand and Australia.

    India's foreign minister, Subrahmanyam Jaishankar, denounced China's "unfair" trade policy and created a "huge trade deficit". China's Ministry of Commerce spokesman said in August 29th this year that China will continue to play a constructive role in the negotiation process, while Wang Huiyao, the consultant of China's Zhongnanhai and founder of China and globalization center, said the Chinese side remained optimistic.

    Many RCEP members firmly believe that the advantages of regional agreements outweigh any lingering doubts, especially when they respond to the slowdown in global economic growth and the lasting US China trade war. RCEP the next round of talks will be held in Da Nang, Vietnam at the end of this month.

    Indonesian trade minister Lukita (Enggartiasto Lukita) issued a statement in this (9) 9, warning that the RCEP negotiations have entered a "no return". The canal admits that the negotiations are still far apart in some areas. Some of the solutions put forward by individual countries are not applicable to the "outlaying majority". This year's solution is very urgent. If it can not be completed, RCEP will lose the important driving force to promote world economic transformation and progress.

    Not everyone is hopeless about the progress of the RCEP agreement. Rebecca Star Maria, executive director of APEC Secretariat (Rebecca Fatima Sta Maria) expressed cautiously optimistic attitude. He pointed out that the trans Pacific Partnership comprehensive progress agreement (CPTPP) has been in progress for eight years from start to approval, and Iraq expects more good interest rates in November.

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