Opens doors for trade businesses and investors across a Asian region
Australia will sign a major free trade deal involving 15 countries from Asia Pacific region but India is holding out. Australia is a supporter for the proposed new free trade deal binding regional economies more closely together. India is over concern about market access, fearing is domestic industries would be hit hard if the country will be flooded by cheap China goods. That’s why India is saying it would not join this trade summit.
At the East Asia summit in the Bangkok, 15 out of 16 participants agreed to sign up the Regional Comprehensive Economic Partnership (RCEP). The RECP would be largest free trade agreement in the world. Along with 10 ASEAN countries, there are other countries involved such as Australia, New Zealand, Japan, South Korea, and China.
Trade Minister Simon Birmingham said in the statement, “Australia would continue to try to get India, which withdrew after concerns about opening its economy to China, into the pact. As RCEP economies develop and their middle classes grow, this deal will open up new doors for trade businesses and investors across our region.”
Australian Prime Minister Scott Morrison insisted there will be new opportunities for India to be present in this trade deal.
Promoting development in the economies across the region
RECP will significantly boost the region’s future growth prospects and contribute positively to global economy as it supports to strong multidimensional trading system. All RECP countries will work together to resolve India’s outstanding issues by mutual understanding. India’s Final decision will depend upon satisfactory resolution of these issues.
RCEP would further promote intra-Asian economic integration, insulating the region more from the United States both economically and strategically. Australia can faster RCEP discussions by collaborating with ASEAN members like Indonesia to improve the chances of India agreeing to the RCEP.