The Union Minister of Commerce and Industry Shri Anand Sharma attended the first meeting of the Regional Comprehensive Economic Partnership (RCEP) Ministers in Brunei on 19th August, 2013. Speaking on the occassion, Shri Sharma emphasised the significance of regional economic integration in the changing global scenario underscoring the benefits of larger integrated market extending from Indian Ocean to Pacific. Shri Sharma highlighted the opportunities and benefits that will be provided by RCEP for furthering the economic ties and broadening of market access in the region. “India firmly believes that greater economic integration among participating countries will boost economic growth, enhance flow of trade and investment, create employment opportunities and bring down the development gaps among the countries,” said Shri Sharma.

Shri Sharma also highlighted that with the diversity in the economies of the RCEP participants, “it will take immense effort, cooperation and compromise among the participants to arrive at a mutually satisfactory outcome which addresses the concerns of all the participants.” Shri Sharma claerly stated that “India, while maintaining a single schedule, will need adequate flexibility to address her sensitivities which may differ for each individual participating country.” He further added that “besides hoping to carve out a niche for itself in the regional value chains, India expects to benefit from the large integrated market for services and investments.”

The RCEP negotiations were launched by the Leaders of the Participating Countries in Phnom Penh in November 2012. The first round of negotiations were held from May 8th to 13th 2013 in Brunei. Besides the Trade Negotiating Committee, Working Groups were established for Trade in Goods, Trade in Services and Investment. The TNC has finalised the Scoping Paper and the three working groups, namely on trade in goods, trade in services and investment, have initiated discussions towards finalising the approach and modalities for the negotiations.

The Ministers were enthused with the vision and aspirations of this partnership that envisages regional economic integration leading to the creation of the largest regional trading bloc in the world amounting for almost 45 per cent of the world population with a combined GDP of USD 21.4 trillion. This will greatly facilitate the development of regional supply chains and increase the efficiency and competitiveness of the manufacturing industry in this region with a view to jointly improve their global standing.

RCEP is an ambitious partnership involving the ten ASEAN countries and six FTA partners namely India, China, Japan, Korea, Australia and New Zealand. It is a comprehensive arrangement involving agreements in areas like Trade in Goods, Trade in Services and Investment. The RCEP aims to be a high level modern free trade agreement which will go beyond liberalisation and pave the way for regional economic integration contributing to the prosperity of the Participating Countries.

The next meeting of TNC will be held in Brisbane from 23rd to 27th September, 2013. It is expected that the three WGs will be in a position to hold serious and substantive negotiations during this round to take the process forward. The Ministers advised the negotiators to apply themselves in all seriousness to ensure that the negotiations proceed as per the work programme.

Shri Sharma also attended the ASEAN Business and Investment Summit in Brunei which was inaugurated by the Sultan of Brunei. Speaking at the Seminar Minister spoke about regional and global economic perspective. He also spoke on the significance of the regional integration under RCEP and the role it is going to play as a leading regional trading bloc in the world.

Regional economic integration under RCEP to expand market access and require flexibility to address participant sensitivities. Regional economic integration through RCEP aims to broaden market access and deepen trade and investment ties via comprehensive agreements on Trade in Goods, Trade in Services and Investment. Negotiations are conducted through a Trade Negotiating Committee and three working groups; diversity among participants necessitates cooperation, compromise and flexibility to address individual country sensitivities while pursuing a single schedule and substantive, programme-driven negotiation rounds.