Q. With reference to the Regional Comprehensive Economic Partnership (RCEP) consider the following statements:
1.The members of RCEP together account for a third of the world gross domestic product (GDP).
2.It was launched to prevent trade with China and reduce import dependence on it.
Which of the statements given above is/are correct?
Statement 1 is correct. The Regional Comprehensive Economic Partnership (RCEP) is a proposed agreement between the member states of the Association of Southeast Asian Nations (Asean) and its free trade agreement (FTA) partners. The 16 countries negotiating the RCEP together account for a third of the world gross domestic product (GDP) and almost half the world’s population.
Statement 2 is incorrect. RCEP was pushed by China in 2012 in order to counter another FTA that was in the works at the time: The Trans-Pacific Partnership (TPP). The US-led TPP excluded China. However, in 2016 US President Donald Trump withdrew his country from the TPP. Since then, the RCEP has become a major tool for China to counter the US efforts to prevent trade with Beijing.
Source: India Today
