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Question

Consider the following statements about the Regional Comprehensive Economic Partnership (RCEP):

1. It is a comprehensive free trade agreement between the ASEAN member States and ASEAN's free trade agreement partners.

2. India opted out of RCEP.

Which of the statements given above is/are correct?

This question was previously asked in
CDS 2 2024 Maths Question Paper (01-Sep-2024)
The correct answer is

Both 1 and 2

Understanding the Regional Comprehensive Economic Partnership (RCEP)

This solution explains the key aspects of the Regional Comprehensive Economic Partnership (RCEP) based on the provided statements and identifies the correct option.

Statement 1 Analysis: RCEP as a Comprehensive Free Trade Agreement

  • The Regional Comprehensive Economic Partnership (RCEP) is indeed a significant economic agreement.
  • It is recognized as a comprehensive, high-quality, and mutually beneficial free trade agreement (FTA).
  • The participating countries include the 10 member states of the Association of Southeast Asian Nations (ASEAN member States) and their existing FTA partners.
  • These partners are Australia, China, Japan, South Korea, and New Zealand.
  • Therefore, the description of RCEP as an agreement between ASEAN member States and ASEAN's FTA partners is accurate.
  • Conclusion for Statement 1: The first statement is correct.

Statement 2 Analysis: India's Participation in RCEP

  • India was involved in the RCEP negotiations from the beginning.
  • However, India ultimately decided not to sign the RCEP agreement.
  • India formally announced its decision to opt out of the RCEP deal in November 2019.
  • Key reasons cited for India's withdrawal included concerns about potential impacts on domestic industries and livelihoods due to increased trade liberalisation, particularly regarding trade deficits with certain participating countries.
  • Therefore, the statement that India opted out of RCEP is factually correct.
  • Conclusion for Statement 2: The second statement is correct.

Final Conclusion on RCEP Statements

Based on the analysis of both statements:

  • Statement 1 accurately describes the nature and participants of the RCEP agreement.
  • Statement 2 correctly states India's decision regarding its participation in RCEP.

Since both statements provided are correct, the option that includes both statements is the right choice.

Identifying the Correct Option

Considering that both Statement 1 and Statement 2 are correct:

  • Option 1 (1 only) is incorrect because Statement 2 is also correct.
  • Option 2 (2 only) is incorrect because Statement 1 is also correct.
  • Option 3 (Both 1 and 2) is correct because both statements accurately reflect the facts about RCEP and India's position.
  • Option 4 (Neither 1 nor 2) is incorrect because both statements are correct.
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