Japan won't join RCEP if India dosen't Join

Regional Comprehensive Economic Partnership

• It's a Free Trade Agreement that was proposed between ASEAN countries & their FTA partners (Australia, China, Japan, New Zealand & South Korea).

India's stand

• India pulls out its name form RCEP on November 4, 2019, In ASEAN+3 Summit.
• The adverse impact of the deal would be on its citizens.
• Japan called India to rejoin The Partnership.

Why did India pull out from RCEP?

TRADE DEFICIT

• India has a trade deficit with 11 countries out of 15 RCEP nations.
• In the last 5 years, the trade deficit of India was almost doubled with there countries.
• from $54 billion in 2013-14 to $105 billion in 2018-19.
• a free trade agreement with the grouping would have increased it further.

STATEMENT

"Japan won't sign RCEP if India doesn't join"

"We aren't thinking about that at all yet,"

Deputy Minister for the economy, trade, and industry Hideki Makihara were quoted in the report as saying.

"All we are thinking of is negotiations including India," The Japanese trade Minister added.

WHY JAPAN IS DOING THIS?

• In FY 2017-2018 India-japan bilateral trade reached US$ 15.71 billion.
• Exports from Japan to India during this period were US$ 10.97 billion and imports were US$4.74 billion. 
• India's primary exports to Japan have been petroleum products, chemical, elements, compound, non-metallic, mineral ware, fish & fish preparations, metalliferous ores& scrap, clothing & accessories, iron & steel products, textile yarn, fabrics, and machinery, etc.

Japan exports Machinery, transport equipment, iron and steel, electronic goods, organic chemicals, machine tools, etc.

Other reasons

South Korea factor - japan and south Korea tensions - a mini trade war.