Q. Consider the following statement regarding Regional Economic Cooperation Council:
1. The 37th ASEAN Summit led to emergence of RCEP which will be world’s largest trading bloc
2. Apart from ASEAN members USA, Japan and Australia are its key member
Which of the above statements is/are correct?
Statement 2 is incorrect
- The 37th ASEAN Summit led to the emergence of RCEP.
- Members: It consists of 16 members, including 10 members from Association of Southeast Asian Nations (ASEAN) as well as South Korea, China, Japan, Australia and New Zealand.
- Members of the RCEP make up nearly a third of the world’s population and account for 29% of global gross domestic product (GDP)
- It aims to eliminate tariffs on import in the next 20 years. It also includes provisions on intellectual property, telecommunications, financial services, e-commerce and professional services.
- Negotiations over an RCEP deal began in 2012. India was also part of the negotiations, but it pulled out in 2019 over concerns that lower tariffs could hurt local producers