The world’s largest free trade agreement launched in 2020. India helped negotiate it for seven years, then walked away just before the finish line.
🕰️ Timeline
2012 — Negotiations Begin
- 2012 ASEAN and its FTA partners launch RCEP negotiations.
2019 — India Withdraws
- 4 Nov 2019 India opts out at the third RCEP summit, in Bangkok, after seven years of negotiations.
2020 — RCEP Is Signed
- 15 Nov 2020 The remaining 15 countries sign RCEP, in an online ceremony amid the pandemic. It enters into force in January 2022.
✊ Must Know
Who’s In RCEP
- Grouping RCEP groups the 10 ASEAN member states with five of their FTA partners. Those five are Australia, China, Japan, New Zealand, and South Korea.
- Scale It is the world’s largest free trade agreement, covering about 30% of global GDP and a third of the world’s population.
India’s Absence
- Not a member India negotiated RCEP for seven years but withdrew in November 2019, before signing.
💡 Good to Know
Why India Walked Away
- China deficit India already ran a large trade deficit with China, without any FTA in place. In FY2018, India’s trade deficit with China alone was about USD 53.6 billion.
- Fear India feared RCEP would widen this deficit further, flooding Indian markets with cheaper Chinese goods without matching access for Indian exports elsewhere.
Domestic Concerns
- Farmers India worried the deal would hurt domestic farmers and weaken protections like anti-dumping duties on Chinese steel and chemicals.
- Industry Indian industry bodies also raised doubts about whether earlier FTAs had delivered comparable benefits.
Test Yourself
🌟 Great to Know
A Door Left Open
- Re-entry clause RCEP’s own text leaves a door open for India to join later. India has not rejoined as of 2026.
📝 Previous Year Questions
UPSC CSP 2016 — Which Group RCEP Refers To
- UPSC 2016 The correct answer is ASEAN. RCEP groups the 10 ASEAN states with five of their FTA partners: Australia, China, Japan, New Zealand, and South Korea. See UPSC CSP 2016 GS Paper I, Q77.
Beyond the answer
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